Mirabelle Contributed Land with a $5,000 Basis and a $9,000 $$\begin{array} { | l | l |} \hline \text { Mirabelle } & \text { Sergio } \\\hline 0 & 0 \\\hline\end{array}$$

question 54

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.How much gain should Mirabelle and Sergio recognize?

• A) \[\begin{array} { | l | l |}
• \hline \text { Mirabelle } & \text { Sergio } \\
• \hline 0 & 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l |}
• \hline \text { Mirabelle } & \text { Sergio } \\
• \hline \$ 4,000 & 0 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Mirabelle } & \text { Sergio } \\
• \hline \$ 4,000 & \$ 3,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Mirabelle } & \text { Sergio } \\
• \hline \$ 5,500 & \$ 1,500 \\
• \hline
• \end{array}\]

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