Sue and Andrew form SA general partnership. Each person

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $13,000 of cash and land with an FMV of $58,000. Her basis in the land is $23,000. Andrew contributes equipment with an FMV of $15,000 and a building with an FMV of $36,000. His basis in the equipment is $11,000, and his basis in the building is $23,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

Multiple Choice

  • $0.

  • $4,000.

  • $48,000.

  • $52,000.