The ABCD partnership has four partners.
Each partner’s adjusted basis in the partnership interest
owned by that partner was $100,000 on the first day of last year.
The partnership reported net income for
last year of $80,000 (there were no separately stated items to take into account). The partnership distributedpro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of
$25,000 and a basis to the partnership of $10,000. How much is includible in each partner’s gross income for
the year as the result of the distribution?