1. ________ Wally owns a 53% interest in the Hunter Partnership. He sells land to the partnership for $150,000. The land is worth $150,000 and has a basis to Wally of $160,000. One year later, Hunter Partnership sells the land to a third party for $152,000. One of the results of these transactions is that:

a. Hunter Partnership has a recognized gain of $2,000.

b. Hunter Partnership has a recognized loss of $8,000.

c. Wally has a recognized loss of $10,000.

d. Hunter Partnership has no recognized gain or loss

2. ________ Wilmas adjusted basis in a partnership is $48,000 before receiving a proportionate current distribution of: (1) land with an adjusted basis to the partnership of $24,000 and a FMV of $19,000; and (2) inventory with an adjusted basis to the partnership of $28,000 and a FMV of $74,000. What are Wilmas bases in the land and her partnership interest after the distribution?

Partnership

Land Interest

1. $24,000 $0
2. $20,000 $0
3. $19,000 $0
4. $19,000 $1,000

3. ________ Fox and Mason formed Andy Partnership in 2019. Fox contributed $40,000 cash. Mason contributed property with an adjusted basis of $40,000 and a FMV of $60,000. The property was subject to a $20,000 mortgage which was assumed by the partnership. Fox and Mason agree to split the liabilities, profits, and losses equally. What are Foxs and Masons bases in the Andy Partnership immediately after the transfer?

Fox Mason

1. $50,000 $30,000
2. $40,000 $40,000
3. $40,000 $50,000
4. $30,000 $50,000