Helmut Contributed Land with a Basis of $5,000 and an FMV

question 26

Multiple Choice

Helmut contributed land with a basis of $5,000 and an FMV of $10,000 to the HG Partnership five years ago to acquire a 50% partnership interest. This year the land is distributed to another partner, Gail, when its FMV is $11,000. No other distributions have been made since Helmut became a partner. When the land is distributed to Gail, Helmut recognizes a gain of

• A)$0.
• B)$2,500.
• C)$3,000.
• D)$5,000.

---

Definitions:

Average Performance

The typical or mean level of success or proficiency attained in a specific area or task.

Artistic Ability

The talent or skill in creating works of art, such as painting, drawing, sculpture, music, literature, or dance, embodying creative and aesthetic qualities.

Intelligence Tests

Tests that assess a person’s intellectual strengths and weaknesses.

Musical Ability

The capacity to comprehend, produce, or perform music, often involving skills such as pitch and rhythm recognition.