How much gain related to the transaction will bob report

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Problem 1: Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $44,000 in cash and $44,000 worth of equipment. Frank's adjusted basis in the equipment was $29,000. Bob contributed $44,000 in cash and $44,000 worth of land. Bob's adjusted basis in the land was $36,000. On 3/15/X4, Soxy Socks sells the land Bob contributed for $66,000. How much gain (loss) related to this transaction will Bob report on his X4 return?

Option 1: $22,000.
Option 2: Incorrect
Option 3: $33,000.
Option 4: $19,000.
Option 5: $41,000.

Reference no: EM132990506

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