Andrew contributed investment land having an $18,000 basis and a $22,000 FMV along with $4,000 in money to the ABC Partnership when it was formed Two years later, the partnership distributed the investment land Andrew had contributed to Bob, another partner At the time of the distribution, the land...

a 3000 gain by Andrew Andrew must recognize the gain that would have been allocated to him had the p ...

Andrew contributed investment land having an $18,000 basis and a $22,000 FMV along with $4,000 in money

Question:

Andrew contributed investment land having an $18,000 basis and a $22,000 FMV along with $4,000 in money to the ABC when it was formed. Two years later, the distributed the investment land Andrew had contributed to Bob, another partner. At the time of the distribution, the land had a $21,000 FMV, and Andrew and Bob’s bases in their interests were $21,000 and $30,000, respectively.
a. What gain or loss must be recognized on the distribution, and who must recognize it?
b. What are the bases for Andrew and Bob’s interests in the after the distribution?
c. What is Bob’s basis in the distributed land?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...