Mirabelle Contributed Land with a $5,000 Basis and a $9,000

question 14

Multiple Choice

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago. This year the land is distributed to Sergio, another partner in the partnership. At the time of distribution, the land had a $12,000 FMV. What is the impact of the distribution on Mirabelle's partnership basis?

• A)0
• B)$4,000 increase
• C)$4,000 decrease
• D)$7,000 increase

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Definitions:

Abdomen

The body region between the chest and the pelvis, containing most of the alimentary canal and primary digestive organs.

Lower Limbs

The parts of the body extending from the hips to the toes, including the thigh, knee, calf, ankle, and foot, responsible for support, locomotion, and balance.

Brachiocephalic

Pertains to structures associated with both the arm and the head, or specifically, a vein or artery servicing these regions.

Blood Flow

The continuous circulation of blood in the cardiovascular system, delivering nutrients and oxygen to and removing waste from tissues.