Daniel's basis in the DAT Partnership is $135,000. DAT distributes its land to Daniel in complete liquidation of his partnership interest. DAT reports the following balance sheet just before the distribution: $\begin{array}{c} \begin{array}{lll} \text{Assets:}\\ \text{Cash}\\ \text{Stock (investment)}\\ \text{Land}\\ \text{Totals}\\\\ \text{Liabilities and capital:}\\ \text{Capital - Daniel}\\ \quad\text{- Alexandra}\\ \quad\text{- Travis}\\ \text{Totals}\\ \end{array} \begin{array}{lll} \underline{\text { Basis }} \\ \mathbf{\$ 110 , 0 0 0} \\ \mathbf{240 , 0 0 0} \\ \underline{\mathbf{55 , 0 0 0}} \\ \underline{\mathbf{\$405 , 0 0 0}} \\ \\\\ \mathbf{\$135 , 0 0 0} \\ \mathbf{135 , 0 0 0} \\ \underline{135,000} \\ \mathbf{\$ 405 , 0 0 0}\\ \end{array} \begin{array}{lll} \underline{\text { FMV }} \\ \$ 110,000 \\ \underline{110,000} \\ \underline{110,000} \\ \underline{\$ 330,000}\\ \\\\\\\\\\\ \end{array} \end{array}$ If DAT has a §754 election in place, what is the amount of the special basis adjustment resulting from the distribution to Daniel? What is DAT's basis in its remaining assets?

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Business
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Taxation of Individuals and Business Entities

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Daniel's basis in the DAT Partnership is $135,000. DAT distributes its land to Daniel in complete liquidation of his partnership interest. DAT reports the following balance sheet just before the distribution: Assets: Cash Stock (investment) Land Totals Liabilities and capital: Capital - Daniel - Alexandra - Travis Totals \ 110,000 \ If DAT has a §754 election in place, what is the amount of the special basis adjustment resulting from the distribution to Daniel? What is DAT's basis in its remaining assets?

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