Assume a new partner or shareholder owns land valued at $180,000 in which the tax basis is $120,000. How would the “incidence of taxation” differ for the entities and owners if

(1) The owner (partner or shareholder) sold the property and contributed the $180,000 proceeds or if

(2) The owner (partner or shareholder) contributed that same property with the entity selling it for $180,000? What theory of partnership taxation supports this difference in treatment? Further, discuss what ethical issues are present in the scenario, and provide a Biblical perspective to frame these issues.