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Sue and Andrew form SA general partnership

Accounting

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Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $18,000 of cash and land with a FMV of $63,000. Her basis in the land is $28,000. Andrew contributes equipment with a FMV of $20,000 and a building with a FMV of $41,000. His basis in the equipment is $16,000, and his basis in the building is $28,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew?

Multiple Choice

• $0.

• $4,000.

• $48,000.

• $52,000.