Helmut Contributed Land with a Basis of $5,000 and an FMV

question 26

Multiple Choice

Helmut contributed land with a basis of $5,000 and an FMV of $10,000 to the HG Partnership five years ago to acquire a 50% partnership interest. This year the land is distributed to another partner, Gail, when its FMV is $11,000. No other distributions have been made since Helmut became a partner. When the land is distributed to Gail, Helmut recognizes a gain of

• A)$0.
• B)$2,500.
• C)$3,000.
• D)$5,000.

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Definitions:

Aggression

Any physical or verbal behavior that is intended to harm another person or persons (or any living thing).

Hardwired

Hardwired refers to traits, behaviors, or responses that are innate or biologically pre-programmed in individuals.

Social Status

A person's standing or importance in society as perceived by others, often influenced by factors like wealth, occupation, and education.

Material Resources

Physical items, assets, or commodities that are used to produce goods and services or fulfill organizational objectives.