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

question 14

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. What is the impact of the distribution on Mirabelle's partnership basis?

• A)0
• B)$4,000 increase
• C)$4,000 decrease
• D)$7,000 increase

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Definitions:

Organic Compound

A chemical compound containing carbon, which is typically found in living systems and includes carbohydrates, lipids, proteins, and nucleic acids.

Blood pH

The measure of the acidity or alkalinity of blood, crucial for maintaining homeostasis, with a normal range typically between 7.35 and 7.45.

Carbon Dioxide

This gas, which lacks both color and odor, is created from burning carbon-containing materials and through the act of respiration. It's a natural part of the air and is consumed by plants for photosynthesis.

Nucleotides

The basic structural units of nucleic acids, like DNA and RNA, consisting of a sugar, a phosphate, and a nitrogenous base.