Barbara Receives a Current Distribution Consisting of $2,000 Cash Plus

Barbara receives a current distribution consisting of $2,000 cash plus other property with an adjusted basis to the partnership of $2,300 and a fair market value on the date of the distribution of $7,000.Barbara has a 10 percent interest in the partnership and her basis in her partnership interest, immediately prior to the distribution, is $5,000.What is Barbara's basis in the noncash property received in the current distribution?

A) $2,000
B) $2,300
C) $3,000
D) $7,000
E) None of the above

Correct Answer:

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