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Question - Bevo transfers land with an adjusted basis of $800 and a free market value of $10,800 to the ANM Partnership, and receives a $10,800 capital account and transfers $10,800 in cash also receiving a $10,800 capital account and a 50% profit interest. Two years later ANM sells the land for $25,800.
Required -
1) How much of the gain or loss will be allocated to Bevo?
2) Suppose the land is solid by ANM for $7800. How much gain or loss is allocated to Bevo?
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