Problem:
At December 31, 2005, Lincoln and Ebert were equal partners in a partnership with net assets having a tax basis and fair market value of $150,000. On January 1, 2006, Gregory contributed securities with a fair market value of $75,000 (purchased in 2003 at a cost of $51,000) to become an equal partner in the new firm of Lincoln, Ebert, and Gregory. The securities were sold on July 1, 2006, for $78,000. How much of the partnership's capital gain from the sale of these securities should be allocated to Gregory?
Choices $25,000, $24,000, $9,000, or $0.