Mirabelle Contributed Land with a $5,000 Basis and a $9,000 $$\begin{array} { | l | l |} \hline \text { Mirabelle } & \text { Sergio } \\\hline 0 & 0 \\\hline\end{array}$$

Mirabelle contributed land with a $5,000 basis and a $9,000 FMV to MS Partnership four years ago.This year the land is distributed to Sergio,another partner in the partnership.At the time of distribution,the land had a $12,000 FMV.How much gain should Mirabelle and Sergio recognize?

A) $$\begin{array} { | l | l |} \hline \text { Mirabelle } & \text { Sergio } \\\hline 0 & 0 \\\hline\end{array}$$
B) $$\begin{array} { | l | l |} \hline \text { Mirabelle } & \text { Sergio } \\\hline \$ 4,000 & 0 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Mirabelle } & \text { Sergio } \\\hline \$ 4,000 & \$ 3,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Mirabelle } & \text { Sergio } \\\hline \$ 5,500 & \$ 1,500 \\\hline\end{array}$$