Two Years Ago,Tom Contributed Investment Land with a Basis of $50,000

question 12

Essay

Two years ago,Tom contributed investment land with a basis of $50,000 and FMV of $62,000 to the RST Partnership.This year,Tom has a basis in his partnership interest of $53,000 when he receives a current distribution of $14,000 cash and inventory with a basis of $35,000 and FMV of $52,000.(There is no Sec.751 exchange in connection with the inventory distribution. )The partnership continues to hold the land Tom contributed.How much gain (if any)must Tom recognize as a result of this distribution?

---

Definitions:

Misrepresentation

The act of giving a false or misleading statement about a material fact, with the intent to deceive or mislead.

Observable Behaviors

Actions or reactions of an individual in various situations, that are visible and can be measured or recorded.

Reference Checks

The process of contacting a job applicant's previous employers, colleagues, or other contacts to gain insights into their employment history, qualifications, and character.

Equal Employment Opportunity

A principle that asserts all individuals should have the same chance for employment regardless of race, gender, age, or other non-merit factors.