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The equal XYZ Partnership has the following balance sheets: Basis FMV Cash $54,000 $54,000 Land $21,000 $42,000 Unrealized Receivables $0 $15,000 Collectibles $3,000 $9,000 $78,000

The equal XYZ Partnership has the following balance sheets:

Basis

FMV

Cash

$54,000

$54,000

Land

$21,000

$42,000

Unrealized Receivables

$0

$15,000

Collectibles

$3,000

$9,000

$78,000

$120,000

Liabilities

$30,000

$30,000

Capital, X

$12,000

$30,000

Capital, Y

$18,000

$30,000

Capital, Z

$18,000

$30,000

$78,000

$120,000

XYZ has a Code Section 754 election in effect, and X sells her interest to W for $30,000 cash. However, the land was contributed by X at a time when its FMV exceeded its basis by $6,000. How much is the Code Sec. 743(b) adjustment?

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