Answer:
$40,000
Explanation:
Cindy sold her interest in a partnership business for $20,000
Her outside basis is $5,000
She was relieved of $25,000 partnership shares
Therefore her realized value from the sale of her partnership interest can be calculated as follows
=>$20,000 + $25,000 - $5,000
=>$45,000 - $5,000
= $40,000
Hence her realised value is $40,000
