Kudzu, Clemmons, and Clancy form KCC Partnership with the following contributions:

What amount of taxable income to Kudzu results from the formation of KCC?
a. $5,000
b. $0
c. $7,000
d. $2,000

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Contribution Fair Market Value Adjusted Basis Partner Land Services Property Property Kudzu $52,000 N/A 30,000 25,000 $50,000 Kudzu Clemmons 40,000 30,000 Clancy