Jim, one of two equal partners of the JJ Partnership, a general partnership, contributed business...
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Accounting
Jim, one of two equal partners of the JJ Partnership, a general partnership, contributed business property with an adjusted basis to him of $15,000 and a fair market value of $10,000 to the JJ Partnership. Jims capital account was credited with $10,000. The property later was sold for $12,000. As a result of this sale, how much gain or loss must Jim report on his personal income tax return?
a. $1,000 gain
b. $1,500 loss
c. $2,000 gain
d. $3,000 loss
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