Apply Partnership Basis And Allocation Rules Practice Test

The partner recognizing a $20,000 gain and the partnership taking a $50,000 basis.

The partnership taking a fair market value basis of $50,000 in the property.

No gain or loss recognized by either the partner or the partnership - the partnership takes a carryover basis of $30,000 in the property and the partner's outside basis reflects the $30,000 contributed basis.

The partner recognizing a $20,000 gain on the contribution.