Last$$ year,

PattyPatty

contributed land with$$ a$($n$)$

$ $4$ comma $000$$$4,000$

basis and$$ a$($n$)$

$ $10$ comma $000$$$10,000$

fair market value$($FMV$)$ in exchange for$$ a$($n$)$

$40\%40\%$

$$profits$,$ loss, and capital interest in the

PDPD

Partnership.

DaveDave

contributed land with$$ a$($n$)$

$ $8$ comma $000$$$8,000$

basis and$$ a$($n$)$

$ $15$ comma $000$$$15,000$

FMV for the remaining

$60\%60\%$

interest in the partnership. During the current$$ year,

PDPD

Partnership reported

$ $8$ comma $000$$$8,000$

of ordinary income and sold the land that

PattyPatty

contributed for

$ $14$ comma $000$$$14,000,$

thereby producing a taxable$$ long$-$term capital gain of

$ $10$ comma $000$$$10,000$

$($$ $14$ comma $000$$$14,000$dash$$$ $4$ comma $000$$$4,000).$

Requirement

What income or gain must

PattyPatty

and

DaveDave

report from the

PDPD

Partnership in the current$$ year?

Question content area bottom

Part $1$

What income or gain must

PattyPatty

report from the

PDPD

Partnership in the current$$ year?

Income type

Amount

$$

$$

$$

$$

Total income $-$ Patty

$$

Part $2$

What income or gain must

DaveDave

report from the

PDPD

Partnership in the current$$ year?

Income type

Amount

$$

$$

$$

$$

Total income $-$ Dave

$$