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:

Monomer Unit

A small molecule that can react with similar molecules to form a polymer, serving as the basic building block of polymers.

Poly(Lactic Acid)

A biodegradable and bioactive thermoplastic derived from renewable resources, such as corn starch or sugarcane.

Stereochemistry

The study of the spatial arrangements of atoms within molecules and their impact on the chemical properties of those molecules.

Crystalline Polymers

Polymers characterized by a highly ordered molecular structure with regions of well-aligned molecular chains, giving them unique physical properties.