Michael contributed land with a $$50,000$ FMV and a $$20,000$ basis to Texas Partnership in exchange for $50\%$ interest in the partnership. The partnership holds the land and none of the $$30,000$ precontribution gain has been recognized. Michael has a $$40,000$ basis in the partnership when he receives a $$10,000$ cash distribution plus property distribution. The property was purchased by the partnership and has a $$45,000$ FMV and $$20,000$ basis. Under the Sec $731$ distribution rules Michael recognizes no gain on the cash distribution. But what does Michael recognize under $737$ on the property distribution?

$$30,000$

$$15,000$

$$0$

$$5,000$