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:

Reduced Volume

Pertains to a decrease in size, capacity, or amount of a physical object or an auditory level.

Hypochondriasis

A condition characterized by excessive worry about having a serious illness, despite medical reassurance.

Health

A condition of total well-being encompassing physical, mental, and social aspects, rather than simply the lack of illness or frailty.

Concerns

Matters of interest or importance to someone.