Question
Enter problem statement, appropriate input type, and other instructions here. On January 1 , 2017 Pam purchases a one-third interest in the RRR partnership for
Enter problem statement, appropriate input type, and other instructions here.
On January 1 , 2017 Pam purchases a one-third interest in the RRR partnership for $600,000. The partnerships only asset is a piece of land held for investment . The land has a tax basis of $1,200,000 and a FMV of $1,800,000. RRR has a Section 754 election in effect. On June 30, 2020, RRR sells the land for $2,100,000 . As a result , RRR will allocate what amount of capital gain to Pam in 2020 ?
A.$233,333
B.$0
C.$300,000
D.$100,000
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Auditing Concepts For A Changing Environment
Authors: Larry E. Rittenberg, Bradley J. Schwieger
5th Edition
0324223102, 978-0324223101
