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.

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Definitions:

Late Adulthood

A stage in human development that typically begins around the age of 65 and is characterized by retirement, aging, and change in social roles.

Memory

The mental capacity to store, retain, and retrieve information, playing a crucial role in learning and cognition.

Alzheimer's Disease

A progressive neurological disorder that causes brain cells to waste away and die, leading to memory loss and cognitive decline.

Aging

Aging is the process of becoming older, encompassing a variety of biological, physical, psychological, and social changes over time.