Kate and Leopold are equal partners in Love Partnership. Kate originally donated land with a basis of $12,000 and a fair market value of $20,000. Leopold originally donated $20,000 in cash. In the current year, Love Partnership sells the land for $22,000. How much gain is recognized on the sale of the land, and how much gain is allocated to each partner?

Group of answer choices

A -$10,000 gain on sale; $9,000 gain allocated to Kate; $1,000 gain allocated to Leopold

B-$2,000 gain on sale; $1,000 gain allocated to Kate; $1,000 gain allocated to Leopold

C-$2,000 gain on sale; $2,000 gain allocated to Kate; no gain allocated to Leopold

D-$10,000 gain on sale; $5,000 gain allocated to Kate; $5,000 gain allocated to Leopold

Answer rating: 100% (QA)

B2000 gain on sale 1000 gain allocated to Kate 10... View the full answer