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

question 97

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.How much gain should Mirabelle and Sergio recognize?

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Definitions:

Piraha Tribespeople

A native group living in the Amazon Rainforest, known for their unique language and cultural practices.

Linguistic Determinism

The hypothesis that language determines thought, meaning the structure of language can affect cognition and perception.

Linguistic Determinism Hypothesis

The theory suggesting that language shapes and limits human thought processes and perceptions of the world.

Bilingual

The ability of an individual to use two languages effectively.