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30. Susan Moore contributed land with an adjusted basis of $500,000 and a fair market value...

30. Susan Moore contributed land with an adjusted basis of $500,000 and a fair market value of $800,000 to the Whirligig partnership in exchange for a 20 percent interest in the partnership. Susan held the land as a capital asset, and Whirligig also held the land as a capital asset. Three years after Susan transferred the land, Whirligig distributes the land to another partner when the land’s FMV is $1,000,000. What is Whirligig’s gain on the distribution, and what is Susan’s gain?

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Answer are highlighted in yellow: Solution: a) Wirligigs (Partnership) gain on the distribution (1000000-800000) 200000 b)Su

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