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Kelly and Bob form KB general partnership. Each person receives an equal interest in the newly created partnership. Kelly contributes $10,000 of cash and land
Kelly and Bob form KB general partnership. Each person receives an equal interest in the newly created partnership. Kelly contributes $10,000 of cash and land with a FMV of $55,000. Her basis in the land is $20,000. Bob contributes equipment with a FMV of $12,000 and a building with a FMV of $33,000. His basis in the equipment is $8,000, and his basis in the building is $20,000. How much gain must the KB general partnership recognize on the transfer of these assets from Kelly and Bob? $0 $4,000 $48,000 $52,000
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