1. J and K create a new partnership JK, LLC. J and K are equal partners in the partnership. J contributes a building with adjusted basis to J of $1,000 and fair market value of $5,000. Before its contribution, the building had not been depreciated. H contributed cash of $5,000. Assuming the building was sold to an unrelated third party immediately after its contribution, how much gain would K recognize from the transaction?

   		$5,000
   		$1,000
   		$4,000
   		$0