The ABCD partnership has four partners. Each partner’s adjusted basis in the partnership interest owned by that partner was $100,000 on the first…

29.

The ABCD partnership has four partners.

Each partner’s adjusted basis in the partnership interest

owned by that partner was $100,000 on the first day of last year.

The partnership reported net income for

last year of $80,000 (there were no separately stated items to take into account). The partnership distributedpro rata to each partner $30,000 in cash plus identical parcels of land that each had a fair market value of

$25,000 and a basis to the partnership of $10,000. How much is includible in each partner’s gross income for

the year as the result of the distribution?

a.

$80,000

b.

$55,000

c.

$30,000

d.

$10,000

e.

0