Hart’s adjusted basis in Best Partnership was $9,000 at the time he received the following nonliquidating distribution of partnership property:

Cash

$ 5,000

Land

Adjusted basis

7,000

Fair market value

10,000

What was the amount of Hart’s basis in the land?

  1. $0
  2. $ 4,000
  3. $ 7,000
  4. $10,000