Katlin contributes land to a partnership with a basis of $44,000 and a FMV of $56,000 in
Question:
Katlin contributes land to a partnership with a basis of $44,000 and a FMV of $56,000 in 2017. In 2019, when the FMV of the land is $58,000, the partnership distributes the land to Baily, another partner. Which of the following is true?
a. Katlin recognizes no gain or loss.
b. Baily recognizes a gain of $14,000.
c. Katlin recognizes a gain of $12,000.
d. Baily has a basis of $58,000 in the land.
PartnershipA 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...
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c Katlin recognizes a gain of 12000 Fee...View the full answer
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