At the formation of the BD Partnership, Betty contributes land with a basis of $10,000 and a

Question:

At the formation of the BD Partnership, Betty contributes land with a basis of $10,000 and a FMV of $30,000 and Dick contributes cash of $30,000. Betty and Dick share profits and losses equally. When the land is sold two years later for $50,000, Betty must recognize a gain of.

a.$10,000

b.$20,000

c.$30,000

d.$40,000