Question: 40. In the current year, when Hobens tax basis in Lynz Partnership interest was $10,000, Hoben received a liquidating distribution as follows: Adjusted tax basis

40. In the current year, when Hoben’s tax basis in Lynz Partnership interest was $10,000, Hoben received a liquidating distribution as follows:

Adjusted tax basis Fair market value Marketable securities $ 5,000 $ 5,000 Land 25,000 27,000 Lynz had no appreciated inventory, unrealized receivables, or properties that had been contributed by its partners. What was Hoben’s recognized gain on the distribution?

a. $0

b. $15,000

c. $22,000

d. $32,000

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