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Question - Current Distribution of Contributed Property. Andrew contributed investment land having an $18,000 basis and a $22,000 FMV along with $4,000 in money to the ABC Partnership when it was formed. Two years later, the partnership distributed the investment land Andrew had contributed to Bob, another partner. At the time of the distribution, the land had a $21,000 FMV, and Andrew and Bob's bases in their partnership interests were $21,000 FMV, and $30,000, respectively.
a) What gain or loss must be recognized on the distribution, and who must recognize it?
b) What are the bases for Andrew and Bob's interests in the partnership after the distribution?
c) What is Bob's basis in the distributed land?
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