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Question - AB Partnership has the following assets and liabilities at year end. The book basis and tax basis are the same amount.
Machine: Basis $10,000 Value $13,000
Building: Basis $80,000 Value $100,000
Note 1: Basis $15,000 Value $15,000
Note 2: Basis $90,000 Value $90,000
Note 1 is a nonrecourse note attached to the machine. Note 2 is a recourse note attached to the building. What is the amount of the partnership's minimum gain?
$2,000
$3,000
$5,000
$15,000
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