Grover has a 50% interest in the Cleveland Partnership. The…
Grover has a 50% interest in the Cleveland Partnership. The basis for his partnership interest is $50,000. The partners share the economic risk of loss from liabilities in the same way they share partnership income and losses. Grover receives a distribution of land that has an FMV of $40,000 and an adjusted basis of $30,000. The land is subject to a $15,000 liability, which Grover assumes. His basis in Cleveland Partnership interest following the land distribution is