Match the following independent distribution payments in liquidation of a partner's interest in an ongoing partnership with the statements below.
-Distribution of $25,000 cash for a partner's share of substantially appreciated inventory.
A)A payment for the partner's share of partnership income under § 736a).
B)A payment for the partner's share of partnership property under § 736b).
C)The payment includes both a § 736a) and a § 736b) element.

Question

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A distribution of $25,000 cash for a partner's share of substantially appreciated inventory is considered a payment for the partner's share of partnership property under § 736(b). This section deals with payments made in liquidation of the partner's interest in partnership property, including appreciated inventory.

Match the Following Independent Distribution Payments in Liquidation of a Partner's