Detailed Answer
(d) The requirement is to determine the amount of the
partnership’s capital gain from the sale of securities to be allocated
to Carr. Normally, the entire amount of precontribution
gain would be allocated to Carr. However, in this case the allocation
to Carr is limited to the partnership’s recognized gain resulting
from the sale, $47,000 selling price – $35,000 basis =
$12,000.