Abigail contributes land with an adjusted basis of $56,000 and a fair market value of $58,000 to

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Abigail contributes land with an adjusted basis of $56,000 and a fair market value of $58,000 to Blair and Partners, a partnership. Abigail receives a 50% interest in Blair. What is Blair’s recognized gain or loss on the contribution? 

a. $0 

b. $2,000 gain 

c. $2,000 loss 

d. $1,000 gain 

e. $1,000 loss

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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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