Susan Contributed Land with a Basis of $6,000 and an FMV

question 17

Multiple Choice

Susan contributed land with a basis of $6,000 and an FMV of $10,000 to the SH Partnership two years ago to acquire her partnership interest. This year, the land is distributed to Harry when its FMV is $11,000. No other distributions have been made since Susan became a partner. When the land is distributed, the partnership's basis in the land immediately before distribution is increased by

• A)$0.
• B)$1,000.
• C)$4,000.
• D)$5,000.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Stimulus Generalization

is the process in which a response is elicited by stimuli that are similar but not identical to the conditioned stimulus in a conditioning paradigm, demonstrating the ability to generalize learning to new stimuli.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Original CS

In classical conditioning, the original conditioned stimulus that is neutral at first but becomes associated with an unconditioned stimulus to elicit a conditioned response.