Susan Contributed Land with a Basis of $6,000 and an FMV

question 17

Multiple Choice

Susan contributed land with a basis of $6,000 and an FMV of $10,000 to the SH Partnership two years ago to acquire her partnership interest. This year, the land is distributed to Harry when its FMV is $11,000. No other distributions have been made since Susan became a partner. When the land is distributed, the partnership's basis in the land immediately before distribution is increased by

• A)$0.
• B)$1,000.
• C)$4,000.
• D)$5,000.

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Definitions:

Lateral Geniculate Nucleus

A significant relay center in the thalamus for the visual pathway, receiving major inputs from the retina and sending outputs to the visual cortex.

Olfaction

The sense of smell, which is the detection and identification of chemicals in the air by the olfactory system.

Vision

The ability to interpret the surrounding environment by processing information contained in visible light.

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to various areas of the brain.