Exercise 11-15 (Algorithmic) (LO. 5) In 2021 Ryce contributes nondepreciable property with an adjusted basis of $161,000 and a fair market value of $241,500 to the Montgomery Partnership in exchange for a one-half interest in profits and capital. In the next tax year, when the property's fair market value is $257,600, the partnership distributes the property to Jarvis, the other one-half partner. Jarvis's basis in the partnership interest was $257,600 immediately before the distribution. Which partner must recognize the built-in gain, what is the amount recognized, and what is the effect on that partner's basis in the partnership interest? What is the effect on Jarvis's basis in the nondepreciable property received? Ryce must recognize gain of $ 80,500 in the year the property is distributed to Jarvis. He increases his basis in his partnership interest by the gain recognized. Jarvis' basis in the property is $ 338,100 X. Feedback Check My Work Taxable gains may arise on a distribution of property to a partner where precontribution (built-in contributes appreciated property to a partnership, the contributing partner recognizes gain in tw