Rebecca and Stan Each Own a 50% Interest in a Business

Multiple Choice

Rebecca and Stan each own a 50% interest in a business entity.Rebecca contributed $200,000 for her ownership interest and Stan contributed land worth $200,000 (adjusted basis of $150,000) .Several months after the formation of the entity,the land is sold for $220,000.

A) If the entity is a partnership, Stan's share of the recognized gain on the sale of the land is $35,000.
B) If the entity is an S corporation, Stan's share of the recognized gain on the sale of the land is $60,000.
C) If the entity is a C corporation, Stan's share of the recognized gain on the sale of the land is $10,000.
D) If the entity is a limited liability company, Stan's share of the recognized gain on the sale of the land is $60,000.
E) None of the above.