Answer:
option (b) $55,000
Explanation:
Data provided in the question:
Cash distributed = $15,000
Fair market value of the land = $50,000
Inside basis at the time of the distribution = $52,000
Gupta's outside basis = $70,000
Now,
Gupta's Outside basis = Cash + Basis in land
or
$70,000 = $15,000 + Basis in land
or
Basis in land = $70,000 - $15,000
or
Basis in land = $55,000
Hence,
The answer is option (b) $55,000
