Latesha contributes a building with a FMV of $125,000 and a basis of $115,000 to a partnership on January 4,2011.On December 15,2014,the partnership distributed the building to Katie,a partner in the same partnership.At distribution,the building had a FMV of $129,000.
a.What is the effect of the distribution on Latesha,if any?
b.What is the effect of the distribution to Katie?
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