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Jangyoun sells investment land having a$30,000 basis to a partnership in which he has a60% partnership interest. The partnership pays$26,000 (FMV) for the land.Later, the
Jangyoun sells investment land having a$30,000 basis to a partnership in which he has a60% partnership interest. The partnership pays$26,000 (FMV) for the land.Later, the partnership sells the investment land to a nonpartner for$31,000. On the sale of theland, the partnership must recognize a
A.
$4,000 capital gain and$1,000 Sec. 1231 gain.
B.
$5,000 capital gain.
C.
$0 gain or loss.
D.
$1,000 capital gain.
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