Abigail contributes land with an adjusted basis of $56,000 and a fair market value of

$58,000 to Blair and Partners, a partnership. Abigail receives a 50 percent interest in Blair. What is Blair’s recognized gain or loss on the contribution?

a. $0

b. $2,000 gain

c. $2,000 loss

d. $1,000 gain

e. $1,000 loss