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?

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Definitions:

Great Strike Wave

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Purchasing Power

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Management Decisions

Actions or resolutions made by the management team of an organization regarding its operation, strategy, and the welfare of its employees.

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A labor union strategy that seeks to represent workers from a broad range of industries rather than focusing on a specific occupation or sector.