• 11.6: Assume the same facts as in the previous question, except that the partnership has $250,000 of liabilities outstanding. Karen's share of these liabilities is $50,000 (20%). With the liabilities, the partnership's balance sheets would look as follows:

Basis

FMV

Buildings

$100,000

$175,000

Land

200,000

450,000

$300,000

$625,000

Liabilities

$250,000

$250,000

Capital, Karen

10,000

75,000

Capital, Parents

25,000

187,500

Capital, Siblings

15,000

112,500

$300,000

$625,000

a.How much gain must Karen recognize on transfer of the partnership interest to her alma mater?

b.What is the amount of Karen's charitable contributions deduction?