Allen Contributed Land, Which Was Being Held for Sale to Allen's

question 24

Multiple Choice

Allen contributed land, which was being held for sale to Allen's customers, to a partnership in exchange for a 20% interest. The partnership uses the land in its business for three years and then sells the property. When the property was contributed, it had a basis in Allen's hands of $500,000 and an FMV of $600,000. The partnership sells the land for $700,000. The gain reported by the partnership is

• A) $100,000 of ordinary income and $100,000 of Sec. 1231 gain.
• B) $100,000 of Sec. 1231 gain and $100,000 of capital gain.
• C) $200,000 of Sec. 1231 gain.
• D) $200,000 of ordinary income.

Distinguish the different strategies interest groups use to influence public policy and opinion.

Recognize the significance of litigation as a strategy by interest groups to influence policy.

Understand the concept and components of an iron triangle.

Examine the protection and regulation of lobbying activities by constitutional and legal means.