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As part of a liquidating distribution, a partner receives $8,000 cash and land with a fair market value of $12,000 and a basis of $7,000.
As part of a liquidating distribution, a partner receives $8,000 cash and land with a fair market value of $12,000 and a basis of $7,000. The partner's basis in the partnership prior to the distribution was $10,000. What is the partner's basis in the land immediately after the distribution?
A) $2,000
B) $7,000
C) $8,000
D) $12,000
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