Question - A partnership has the following assets and liabilities. The book basis and tax basis are the same amount.
Building: Basis $90,000 Value $92,000
Accounts payable: Basis $8,000 Value $8,000
Note payable: Basis $85,000 Value $85,000
If the note payable is a nonrecourse mortgage on the building, what is the amount of the minimum gain?
$0
$1,000
$2,000
$3,000