Bob Barker contributed land with an adjusted basis to Bob of $50,000 and a fair market value of $100,000 subject to a recourse mortgage of $30,000 in exchange for a one-third interest in the Alpha Partnership. Alpha will assume the mortgage on the land.

a. If the partnership sold the land contributed by Bob fifteen months after the contribution for $130,000, how much taxable gain would be allocated to Bob?

Question a options:

	a. $60,000
	b. $26,667

b. Refer to the facts above. If Alpha had been an S Corporation and Bob had been a one-third shareholder, what would be the amount of taxable gain allocated to Bob on the sale of the land?

Question b options:

	a. $26,667
	b. $80,000
	c. $60,000