19. Sam, Sue, and Shelley formed a partnership. Sam received a 50 percent interest in the partnership in exchange for land with an adjusted basis to him of $30,000 and a fair market value of $50,000. Sue received a 25 percent interest in the partnership in exchange for $25,000 of cash. Shelley received a 25 percent interest in the partnership in exchange for $25,000 of cash. Six years after the date of contribution, the land contributed by Sam was sold by the partnership to an unrelated third party for $90,000. How much gain was required to be allocated to Sam as a result of the sale by the partnership?

a. $20,000

b. $30,000

c. $40,000

d. $60,000

20. Larry and Moe are equal partners in the capital and profits of The LM Partnership. They are not related. On August 1, 2014, Larry sold 100 shares of Last Chance Mining Corp. stock to the partnership for its fair market value of $7,000. Larry had purchased the stock in 2000 for $10,000. What, if any, is Larrys recognized loss on the sale of this stock?

a. $ -0-

b. $3,000 long-term capital loss

c. $1,500 long-term capital loss

d. $3,000 ordinary loss

21. Larry and Moe of the partnership in the prior question admit Curly to the partnership which is renamed The LMC Partnership. The total value of the partnership was $120,000 on December 31, 2014. On January 1, 2015, Curly contributed $40,000 to the partnership, and Curlys partnership capital account was credited with $40,000. The partnerships ordinary net income for 2015 was $60,000. As of December 31, 2015, Curlys basis in his partnership interest and his 2015 income taxable income from the partnership were:

a. basis and income are both $60,000

b. basis=$60,000, income=$20,000

c. basis=$60,000,income=$40,000

d. basis=$40,000,income =$20,000