Question: 1 (2 points) Yong contributes a machine having an adjusted basis of $20,000 and an FMV of $25,000 for a 10% partnership interest. Yong had

1 (2 points) Yong contributes a machine having an adjusted basis of $20,000 and an FMV of $25,000 for a 10% partnership interest. Yong had taken $10,000 of depreciation prior to the contribution. The partnership has no liabilities. As a result of the contribution, Yong must recognize Question 1 options: A) a $5,000 capital gain. B) $10,000 ordinary income. C) a $5,000 Sec. 1245 gain. D) no gain or loss. Question 2 (2 points)

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