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Holly and Marcus formed a partnership. Holly received a 50% interest in partnership capital and profits in exchange for contributing land (basis of $20,000 and a fair market value of $100,000). Marcus received a 50% interst in partnership capital and profits in exchange for contributing 100,000 of cash. three years after the contribution date, the land contributed by Holly is sold by the partnership to a third party for $120,000. how much taxable gain will Holly recognize from the sale?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M983671

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