Juan contributes three parcels of property to the JKL Partnership in exchange for a 40% interest in the partnership. The properties were as follows:

FMV Basis

If Property A is later sold for $140,000, how much gain will Juan recognize?

a. $70,000

b. $50,000

c. $58,000

d. $20,000

Transcribed Image Text:

Property A Property B Property C FMV $120,000 $180,000 $100,000 Basis $70,000 $160,000 $200,000 Property A Property B Property C FMV $120,000 $180,000 $100,000 Basis $70,000 $160,000 $200,000

Answer rating: 100% (QA)

C 58000 Basis of Property A to JKL 70000 Sale price 140000 So gain to JKL 1400... View the full answer