Marcie Is a 40% Member of the M&A LLC

True/False

Marcie is a 40% member of the M&A LLC. Her basis is $10,000 immediately before the LLC distributes to her
$30,000 of cash and land (basis to the LLC of $20,000 and fair market value of $25,000). As a result of the proportionate, current (nonliquidating) distribution, Marcie recognizes a gain of $20,000 and her basis in the land is
$0.