25. 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. Three 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.

26. The ABCD partnership has four partners. Each partners adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner identical parcels of land held by the partnership for investment that each had a fair market value of $25,000 and a basis to the partnership of $10,000. How much is includible in each partners gross income for the year as the result of the distribution?

a. $80,000

b. $20,000

c. $25,000

d. $10,000

e. 0

27. The ABCD partnership has four partners. Each partners adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partners adjusted basis in the land distributed to the partner?

a. 0

b. $20,000

c. $15,000

d. $10,000