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

question 35

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?


Definitions:

Metarterioles

Small blood vessels that function as intermediaries between arterioles and capillaries, controlling blood flow into capillary beds with precapillary sphincters.

Capillary

The smallest blood vessels in the body, which connect arteries and veins, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and surrounding tissues.

Inferior Vena Cava

A large vein that carries deoxygenated blood from the lower and middle parts of the body to the right atrium of the heart.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out to the body through the aorta.

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