Ten years ago, Dudley contributed land to the Prosperity LLC. His basis in the land was $100,000.

The fair market value at the contribution date was $115,000. This year, when the propertys value

was $200,000, the LLC distributed that property to partner Nicki. At the distribution date, Dudleys

basis in his LLC interest was $150,000 and Nickis basis was $160,000. Assume that the partnership

continues in existence and has no hot assets.

a.	What gain or loss is recognized as a result of this distribution of precontribution gain property contributed ten years earlier?
b.	What is Dudleys basis in his partnership interest following the distribution? What is Nickis basis in the property received and her partnership interest following the distribution?
c.	Would your answer change if Dudley had originally contributed the property two years ago? Answer conceptually (no calculations required).