Patrick purchased a one-third interest in the PPP partnership for $600,000. At the time of the purchase, the partnership had a 754 election in effect and its only asset was land with a basis of $1,500,000. This year, PPP sells the land for $1,800,000. What is Patrick's recognized share of the gain on the sale of the land?
A)$0
B)$100,000
C)$300,000
D)none of the above

Question

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The Answer of Patrick purchased a one-third interest in the PPP partnership for $600,000. At the time of the purchase, the partnership had a 754 election in effect and its only asset was land with a basis of $1,500,000. This year, PPP sells the land for $1,800,000. What is Patrick's recognized share of the gain on the sale of the land?
A)$0
B)$100,000
C)$300,000
D)none of the above

Patrick Purchased a One-Third Interest in the PPP Partnership for $600,000