18) At the formation of the EA Partnership, Emily contributes land with a basis of $10,000 and an FMV of $30,000 and Andrea contributes cash of $30,000. Emily and Andrea share profits and losses equally. When the land is sold two years later for $50,000, Emily must recognize a gain of A) $30,000. B) $40,000.

C) $10,000. D) $20,000.