Danson and Ellerby are equal partners in DE Partnership, which is in the business of selling fine art.DE owns assets with a tax basis and fair market value of $240,000.In January of the current year, Finley contributes to the partnership some personal investment art with a fair market value of $120,000 (tax basis $80,000) to become a one-third partner in the new DEF partnership.In October of the current year, DEF sells the art received from Finley for $141,000.What amount of gain from the sale of the artwork should be allocated to Finley?(Hint: you will need to address the built in gain as well as basis in property)

Question 4 options:

$47,000

$7,000

$20,333

$40,000