Susan Contributed Land with a Basis of $6,000 and an FMV

question 17

Multiple Choice

Susan contributed land with a basis of $6,000 and an FMV of $10,000 to the SH Partnership two years ago to acquire her partnership interest. This year, the land is distributed to Harry when its FMV is $11,000. No other distributions have been made since Susan became a partner. When the land is distributed, the partnership's basis in the land immediately before distribution is increased by

• A)$0.
• B)$1,000.
• C)$4,000.
• D)$5,000.

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Definitions:

Secondary Alkyl Halide

An organic compound in which a halogen atom is bonded to a secondary carbon atom, part of an alkyl group.

T-butyl Iodide

An organic compound used in synthesis, characterized by an iodine atom bonded to a tertiary butyl group.

Isopropyl Chloride

A chlorinated hydrocarbon with the formula CH3CHClCH3, used as an organic solvent and chemical intermediate.

Major Organic Product

The primary substance produced in the highest yield from an organic chemical reaction.