: In $2020,$ Adrianna contributed land with a basis of $$16,000$ and a fair market value of $$25,000$ to the A&I Partnership in exchange for a $25\%$ interest in capital and profits. In $2024,$ the partnership distributes this property to Isabel, also a $25\%$ partner, in a current distribution. The fair market value had increased to $$30,000$ at the time the property was distributed. Isabel$$s and Adrianna$$s bases in their partnership interests were each $$40,000$ at the time of the distribution.

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A: How much gain or loss, if any, does Adrianna recognize on the distribution to $$ Isabel? What is Adrianna$$s basis in her partnership interest following the $$ distribution?

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B: What is Isabel$$s basis in the land she received in the distribution?

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C: How much gain or loss, if any, does Isabel recognize on the distribution? What is $$ Isabel$$s basis in her partnership interest following the distribution?

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D: How much gain or loss would Isabel recognize if she later sells the land for its $$ $$30,000$ fair market value? Is this result equitable?

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E: How would your answers to parts $($a$)$ and $($b$)$ change if Adrianna originally $$ contributed the property to the partnership in $2012?$ Explain.

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