Question: Michavel transfers a building ( $ 9 0 , 0 0 0 Fair Market Value and Adjusted Basis of $ 4 0 , 0 0

Michavel transfers a building ( $90,000 Fair Market Value and Adjusted Basis of $40,000) to a Partnership for a twenty-five percent (25%) interest in the Partnership. The building had a Recourse Debt on it of $60,000 and the value of the Partnership Interest received by Michavel was $30,000. Michavel's Recognized Gain on the contribution of the building to the Partnership is:
$3,000.
5-0.
$10,000.
$5,000.
Michavel transfers a building ( $ 9 0 , 0 0 0

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