Mirabelle Contributed Land with a $5,000 Basis and a $9,000

question 43

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. What is the impact of the distribution on Mirabelle's partnership basis?

• A) 0
• B) $7,000 increase
• C) $4,000 increase
• D) $4,000 decrease

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Definitions:

Powell And DiMaggio

They are known for their work in institutional theory, particularly for elaborating on how organizational structures become homogenized through isomorphic processes.

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