Clark and Lois Formed an Equal Partnership Three Years Ago

question 148

Multiple Choice

Clark and Lois formed an equal partnership three years ago.Clark contributed cash of $160,000 while Lois contributed land with a $90,000 adjusted basis and a $160,000 FMV.Three years later the land is sold for $210,000.The tax results to Clark and Lois are

• A)$25,000 of gain to both Clark and Lois.
• B)$50,000 of gain to both Clark and Lois.
• C)$25,000 of gain to Clark and $70,000 gain to Lois.
• D)$25,000 of gain to Clark and $95,000 gain to Lois.

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