FINANCE- This is a Federal Tax class question.

This is a Federal Tax class question.The Sparrow Partnership plans to distribute $200,000 cash to its partners at the end of the year. Marjorie is a 40 percent partner and would receive $80,000. Her basis in the partnership is only $10,000, however, so she would recognize a $70,000 gain if she receives the proposed cash distribution.Marjorie has asked Sparrow instead to purchase a parcel of land that she has found on which she will build her retirement residence. The partnership then will distribute that land to her. Under the partnership distribution rules, Marjorie would take a $10,000 basis in the land worth $80,000. Her basis in the partnership would be reduced to $0, but recognition of the $70,000 gain is deferred.Do you think this is an appropriate transaction? Why.



Lets Start Working

Plagiarism Free

We use anti-plagiarism software to ensure you get high-quality, unique papers. Besides, our writers have a zero plagiarism mentality

On Time Delivery

Your essay will be delivered strictly within the deadline.  If you have an urgent order, we can do it!

Money Back Guarantee

We offer warranty service, including free revisions, and a right to request a refund incase your expectations are not met!


Our Advantage

  • Say “NO” to plagiarism – FREE plagiarism report as an addition to your paper
  • The lowest prices that fit excellent quality
  • Authorship – you are the one who possesses the paper. We DO NOT re-sale or re-use any of them.


Our Freebies

  • Free Cover Page
  • Free Revisions
  • Free Reference Page
  • Free 24/7 support

Pin It on Pinterest

Share This