Question

Evona, an equal partner, sold her partnership interest to Zach, an outsider, for $154,000 cash on January 1, Year 2, when Evona's basis in the partnership was $34,000. In addition, Zach assumed Evona's share of the partnership's liability. What was the total amount realized by Evona on the sale of her partnership interest?

Answer 1

The total amount realized by Evona includes the $154,000 cash plus the assumed partnership liability. Without the liability figure, the exact total can't be determined. The information provided regarding housing values and equity is not relevant to calculating Evona's realized amount.

Step-by-step explanation:

The total amount realized by Evona on the sale of her partnership interest includes the cash received and the liabilities assumed by the buyer. Evona sold her interest for $154,000 and Zach assumed Evona's share of the partnership's liability. These two amounts must be added together to determine the total amount realized. Unfortunately, as we do not have the exact figure for the partnership's liability that Zach assumed, we cannot calculate the precise total amount.

To find this, we would add the $154,000 cash received to the assumed liability. The question appears to lack this necessary detail, as the value of Evona's house or Freda's and Frank’s housing situations are not relevant to the calculation of Evona's realized amount from the sale of her partnership interest.