Nhia and Maya are each 50% owners (capital & profit/loss interest) of NM Partnership. Nhia contributed land
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Question:
Nhia and Maya are each 50% owners (capital & profit/loss interest) of NM Partnership. Nhia contributed land (FMV = $100,000; AB = $10,000) to the partnership in exchange for her 50% interest, and Maya contributed $100,000 cash in exchange for her 50% partnership interest.
Assume that shortly after Nhia contributed the land, NM made a distribution of $100,000 to Nhia.
What amount of gain does Nhia recognize on the transaction?
Expert Answer:
Sale value of the Land 200000 Less FMV of the land when contributed 100000 Total ... View the full answer
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