Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $23,000 of cash and land with a FMV of $68,000. Her basis in the land is $33,000. Andrew contributes equipment with a FMV of $25,000 and a building with a FMV of $46,000. His basis in the equipment is $21,000, and his basis in the building is $33,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

• $0.

• $4,000.

• $48,000.

• $52,000.