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9-38 Sale of Contributed Property-Allocations. Two years ago, X contributed property. which was part of his proprietorship inventory, to the D Partnership in exchange for a one-third partnership interest. At the date of contribution, the property had a basis of $120,000 and a value of $145,000. The property was used in the partnership's business as a nondepreciable $1231 asset. The partnership sold the property for $160,000 in the current year. a. Calculate the amount and character of the taxable gain recognized on the sale allocable to X. b. How would the answer for (a) change if the sale occurred six years rather than two years after contribution? c. How would the answer for (a) change if the property had been sold for $100,000 rather than $160.000 ? 9-39 Retroactive Allocations. On September 1 of the current year, Corporation M contributed $125,000 cash in exchange for an interest in Topper Partnership, a calendar year, accrual basis partnership. For the current year, Topper recognized a $180,000 net operating loss: $82,000 of this loss had accrued as of August 31. In June of the same year, Topper sold marketable securities, recognizing a $63,000 capital gain. a. If Topper does not make an interim closing of its books on August 31 , what is the maximum amount of current-year net operating loss and capital gain that can be allocated to Corporation M? Explain your conclusion. (In answering the question, you may assume that any allocation will have substantial eco