1. Tina and Betty formed a partnership. Tina received a 40 percent interest in the partnership in exchange for land with an adjusted basis to her of $60000 and a fair market value of $80000. Betty received a 60 percent interest in the partnership in exchange for $120000 of cash. Three years after the date of contribution the land contributed by Tina was sold by the partnership to an unrelated third party for $90000. How much gain was required to be allocated to Tina as a result of the sale by the partnership?A. $4000.B. $12000.C. $24000.D. $30000.2. When inventory that was contributed to a partnership in exchange for a partnership interest is eventually sold by the partnership how will the character of the income or loss be determined?A. The character of any income or loss will be ordinary regardless of when the contributed property is sold by the partnership and regardless of the character of the asset in the hands of the partnership.B. The character of any income or loss will be ordinary if the contributed property is sold by the partnership within five years after the date of contribution regardless of the character of the asset in the hands of the partnershipC. The character of any income or loss will be based on the character of the asset in the hands of the partnership regardless of when the contributed property is sold by the partnership.D. The character of any income or loss will be ordinary to the extent of the contributing partner s built-in gain or loss in the property at the time of the contribution regardless of when the contributed property is sold and any balance will based on the character of the asset in the hands of the partnership.3. Barbara and Bill formed an equal partnership B&B a general partnership on January 1 2011. Barbara contributed $100000 in exchange for her one-half interest. Bill contributed land worth $100000 that had an adjusted basis to him of $30000 in exchange for his one-half interest. Which of the following statements is accurate with respect to this transaction?A. None of Barbara Bill or B&B recognized any gain or loss.B. Bill recognized gain of $70000 but Barbara and B&B did not recognize any gain or loss.C. B&B recognized gain or $70000 but Barbara and Bill did not recognize any gain or loss.D. Bill and B&B each recognized $70000 of gain but Barbara did not recognize any gain or loss.Jim one of two equal partners of the JJ Partnership a general partnership contributed business property with an adjusted basis to him of $15000 and a fair market value of $10000 to the JJ Partnership. Jim s capital account was credited with $10000. The property later was sold for $12000.4. As a result of this sale how much gain or loss must Jim report on his personal income tax return?A. $1000 gain.B. $1500 loss.C. $2000 gain.D. $3000 loss.
