The following information pertains to property contributed by Gray on July 1, 2015, for 40% interest in the capital and profits of Kag & Gray, a partnership:
As of June 30,2015
Adjusted basis: $24,000
Fair market value: $30,000
After Grays contribution, Kag &Gray's capital totaled $150,000. What amount of gain was reportable in Gary's 201 return on the contribution of property to the partnership?
a. $0
b. $6,000
c. $30,000
d. $36,000
Answer: A
CPA Exam
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