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Ludden, an individual, has a 50% capital and profits interest in a partnership and contributed six acres of land to the partnership. The property
Ludden, an individual, has a 50% capital and profits interest in a partnership and contributed six acres of land to the partnership. The property had a fair market value of $30,000. Ludden's basis in the property was $20,000. Two years later, the partnership sold the land to an unrelated party for $38,000. What amount of gain on the sale should be allocated to Ludden? Show work for partial credit.
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