In 2015,Angel Contributes Land to a Partnership with a Basis

question 39

Multiple Choice

In 2015,Angel contributes land to a partnership with a basis of $12,000 and a FMV of $22,000.In 2016,when the FMV of the land is $28,000,the partnership distributes the land to Shelia,another partner.What is the basis of the land to Shelia assuming she has a $40,000 basis in her partnership interest?

• A)$28,000.
• B)$0.
• C)$12,000.
• D)$22,000.

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Definitions:

Increases Assets

Transactions or events that enhance the economic resources controlled by a business.

Purchase Requisition

An internal document used within an organization to request authorization for a purchase before a purchase order is issued.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.