Billy contributes land with an FMV of $16,000 and a basis of $7,500 to ABCD partnership in return for a 5% partnership interest in the partnership. ABCD’s basis in the land is $.

$7,500

Explanation:

According to the IRS publication 541, if any property is contributed to the partnership in exchange for an interest in the partnership, neither the partner nor the partnership will recognize any gain or loss. This applies to forming partnerships or already operating partnerships.

The partner's basis and holding period will be passed to the partnership. In this case, ABCD's basis in the land is $7,500 (Billy's basis).

answerpounds of plastic to purchase 200+60-20=(240);