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:

Model and Subject

In research or educational contexts, the model is the system or example being studied or imitated, while the subject is the individual or entity being observed or experimented on.

Hostile Behaviors

Actions or attitudes that express anger, aggression, or resentment towards others.

Imitated

Copied or reproduced someone's behavior, action, or expression, often to learn or fit in.

Adolescents

People undergoing the phase of both physical and mental growth that typically happens from puberty until reaching the age of legal maturity.