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:

Centralized Storage

A system or arrangement where data or resources are collected and maintained in a single location, often for efficiency and security.

Server

A computer or computer program that manages access to a centralized resource or service in a network.

Flatbed Scanner

A device that scans documents, photographs, or other items using a flat surface for the items to lay upon.

Highest-Quality

Referring to the superior standard or level of excellence of a product, service, or attribute, surpassing all others in comparison.