Which of the following will result in a loss to a partner on the distribution?
Question options:
a. A nonliquidating distribution to a partner with an outside basis of $10,000 before the distribution. The distribution consists of cash and liability release of $5,000 and securities with an inside basis of $3,000.
b. A nonliquidating distribution to a partner with an outside basis of $10,000 before the distribution. The distribution consists of cash and liability release of $12,000.
c. A fully liquidating distribution to a partner with an outside basis of $10,000 before the distribution. The distribution consists of cash and liability release of $6,000 and inventory (classified as a Section 751 Asset) with an inside basis of $2,000. No other property is received.
d. A fully liquidating distribution to a partner with an outside basis of $10,000 before the distribution. The distribution consists of cash and liability release of $6,000 and securities with an inside basis of $3,000. No other property is received.