True/False
Cynthia's basis in her LLC interest was $60,000, including her $40,000 share of the LLC's debt. In a proportionate liquidating distribution in which the LLC also liquidates, Cynthia receives cash of $50,000, and inventory with a basis of $3,000 and a fair market value of $5,000. Cynthia recognizes a gain of $30,000 on the distribution and takes a basis of $0 in the inventory.
Correct Answer:
Verified
Correct Answer:
Verified
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