THINGS TO NOT DO DURING THIS EXAM:ACCESS THE INTERNET SEEKIN…

THINGS TO NOT DO DURING THIS EXAM:ACCESS THE INTERNET SEEKING ANSWERS.  HONORLOCK WILL OBSERVE YOU DOING THIS.TALK TO ANOTHER PERSON TO SEEK AN ANSWER.  HONORLOCK WILL OBSERVE YOU DOING THIS.TRY TO DEFEAT HONORLOCK SO YOU CAN DO EITHER ITEM 1 OR 2 ABOVE, OR TO TRY SOMETHING ELSE TO OBTAIN AN ANSWER.

Clark contributes land with an adjusted basis of $25,000 and…

Clark contributes land with an adjusted basis of $25,000 and a FMV of $40,000 to the Fortress of Solitude partnership Two years later when the land is worth $50,000, FS distributes the land to Bruce.  At the time of the sale, Clark’s outside basis is $50,000 and Bruce’s outside basis is $60,000.  What are the tax consequences to  Bruce?