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

question 14

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. What is the impact of the distribution on Mirabelle's partnership basis?

• A)0
• B)$4,000 increase
• C)$4,000 decrease
• D)$7,000 increase