A partner’s initial basis in his partnership interest depends on how the partner acquired the interest.If the partner acquired the interest in exchange for a contribution to the partnership, his basis generally equals the amount of money and the partner’s adjusted basis in any property contributed to the partnership. If the property is subject to indebtedness at the time of the contribution, the partner’s basis is reduced by the portion of the debt that is assumed by the other partners. If the partner acquired his interest in exchange for services, his basis equals the value of services provided. If the partner purchased his partnership interest, his basis equals his cost. The partner’s initial basis is adjusted to give effect to transactions affecting the partnership. After the distribution, Megan’s bases in the land and inventory are, respectively: a. Immediately before the distribution, Andrew’s adjusted basis in the partnership interest was ,000. ,47 Megan’s basis was 0,000 in the MAR Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of ,000, fair market value of 0,000) and inventory (basis of ,000, fair market value of ,000). The distribution consists of ,000 cash and property (adjusted basis to the partnership of ,000 and fair market value of ,000).
Both the partnership and the partners may have income, gain, or loss as a result of proportionate distributions. In addition, Matt’s share of partnership liabilities was reduced by ,000 during the year. As a result of the distribution, Aaron recognizes: a. During the year, he received a cash distribution of ,000 and a property distribution (basis of ,000 and fair market value of ,000). Immediately before the distribution, Aaron’s basis in the partnership interest was ,000. In addition, the partnership repays all liabilities, of which Ashleigh’s share was ,000.
Ashleigh’s basis in the entity immediately before the distribution was ,000, which includes her share of Partnership liabilities.
As a result of the distribution, what is Ashleigh’s basis in the accounts receivable and land, and how much gain or loss does she recognize?