Emily contributed real estate with a FMV of $10,000 and a ba…
Emily contributed real estate with a FMV of $10,000 and a basis of $6,000 to the Happy Hour Partnership 24 months ago to acquire her partnership interest. During the current year, the real estate is distributed to Riley when its FMV is $11,000. No other distributions have been made since Emily became a partner. When the real estate is distributed, the partnership’s basis in the real estate immediately before distribution is increased by