Jangyoun Sells Investment Land Having a $30,000 Basis to a Partnership

question 6

Multiple Choice

Jangyoun sells investment land having a $30,000 basis to a partnership in which he has a 60% partnership interest. The partnership pays $26,000 (FMV) for the land. Later, the partnership sells the investment land to a nonpartner for $31,000. On the sale of the land, the partnership must recognize a

• A)$0 gain or loss.
• B)$1,000 capital gain.
• C)$4,000 capital gain and $1,000 Sec. 1231 gain.
• D)$5,000 capital gain.

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