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Greg, a 40% Partner in GSS Partnership, Contributed Land to the Partnership

question 56

Essay

Greg, a 40% partner in GSS Partnership, contributed land to the partnership in exchange for his partnership interest when the partnership was formed. At the time, his basis in the land was $30,000 and its FMV was $133,000. Three years after the partnership was formed, GSS Partnership decided to sell the land to an unrelated party for $150,000. When the land is sold, how much of the gain should be allocated to each partner of GSS Partnership if Sam and Steve are each 30% partners?


Definitions:

Largest

Describing the most extensive or significant size, volume, or quantity in comparison to others within a group or category.

Range

The difference between the highest and lowest values in a set of data, indicating the data's spread or variability.

Distribution

The process of making a product or service available for use or consumption by a consumer or business user.

Following

The act of going after or behind someone or something, typically to observe or track.

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