Multiple Choice $10-11$

Partnership Formation $($LO $10\mathrm{.}2)$

Abigail contributes land with an adjusted basis of $$50,000$ and a fair market value of $$60,000$ to Blair and Partners, a partnership. Abigail receives a $50-$percent interest in Blair. What is Blair's recognized gain or loss on the contribution?

$$ a$.$ $$5,000$ loss

b$.$ $$10,000$ loss

c$.$ $$10,000$ gain

d$.$ $$5,000$ gain

e$.$ $$0$