Brenda Contributes Appreciated Property to Her Business Entity in a Transaction

Multiple Choice

Brenda contributes appreciated property to her business entity in a transaction which qualifies for nonrecognition of gain.Brenda's ownership interest is 60%.The business entity later sells the appreciated property for $110,000.The property is not depreciable.Which of the following statement(s) is correct?

A) If the entity is a partnership,Brenda's gross income is increased by $41,000 [($35,000 ´ 100%) + ($10,000 ´ 60%) ] in the year of the sale of the property by the partnership.
B) If the entity is a C corporation,the corporation's gross income is increased by $10,000 in the year of the sale of the property by the corporation.
C) If the entity is an S corporation,the S corporation's gross income is increased by $10,000 in the year of the sale of the property by the S corporation and Brenda's gross income is increased by $6,000 ($10,000 ´ 60%) .
D) All of the above.
E) None of the above.