Question

Pablo has a $63,000 basis in his partnership interest. On May 9 of the current tax year, the partnership distributes to him, in a proportionate nonliquidating distribution, cash of $25,000, cash basis receivables with an inside basis of $0 and a fair market value of $16,000, and land with a basis and fair market value to the partnership of $80,000.

If an amount is zero, enter "0".

a. How much is Pablo’s realized and recognized gain on the distribution?
Pablo has a realized gain on the distribution of $ and a recognized gain of $_______

b. What is Pablo’s basis in the receivables, land, and partnership interest following the distribution?
The receivables have a basis of $_______ and the land has a basis of $________ to Pablo. His basis in partnership interests after the distributions is $_____________

Answer 1

Please see attachment

Step-by-step explanation:

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Answer 2

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.