Question Content Area

Mark and Addison formed a partnership. Mark received a $25\%$ interest in partnership capital and profits in exchange for land with a basis of $$40,000$ and a fair market value of $$60,000.$ Addison received a $75\%$ interest in partnership capital and profits in exchange for $$180,000$ of cash. Three years after the contribution date, the land contributed by Mark is sold by the partnership to a third party for $$76,000.$ How much taxable gain will Mark recognize from the sale?

a$.$ $$0$

b$.$ $$9,000$

c$.$ $$24,000$

d$.$ $$16,000$

a$.$ Wanda recognizes a loss of $$100,000.$ Her Jupiter stock basis is $$800,000.$

b$.$ Wanda recognizes a $$100,000$ gain. Her Jupiter stock basis is $$900,000.$

c$.$ Wanda recognizes a $$100,000$ gain. Her Jupiter stock basis is $$700,000.$

d$.$ Wanda recognizes a loss of $$0.$ Her Juniper stock basis is $$800,000.$