Question - 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?
a. 50,000
b. 90,000
c. 100,000
d. 120,000
e. 0