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

question 60

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?

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Definitions:

Belongingness Hypothesis

The theory suggesting that humans have an innate need to form and maintain strong, stable interpersonal relationships.

Interpersonal Relationships

The connections and associations formed between individuals based on social, emotional, or professional interaction.

Pervasive Need

An enduring and extensive requirement that affects many aspects of an individual's life, potentially influencing behavior and well-being.

Parental Investment Theory

A concept in evolutionary biology that suggests the amount of time and energy parents expend for the survival and reproductive success of their offspring.