B joined Avtar & Co. as a partner on 1st June 2020. He contributed his vacant land in the firm as his capital which was recorded in the books of the firm at ₹ 5 lakh. The land was inherited by B from his father in April 2010 and the Fair Market Value (FMV) on that date was ₹ 2 lakh. The land was originally acquired by his father in August 2005 for ₹ 1 lakh. The Fair Market Value (FMV) on 1st June 2018 was ₹ 10 lakh. The full value of the consideration received as a result of the transfer of land by B as capital would be taken as:

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Question:B joined Avtar & Co. as a partner on 1st June 2020. He contributed his vacant land in the firm as his capital which was recorded in the books of the firm at ₹ 5 lakh. The land was inherited by B from his father in April 2010 and the Fair Market Value (FMV) on that date was ₹ 2 lakh. The land was originally acquired by his father in August 2005 for ₹ 1 lakh. The Fair Market Value (FMV) on 1st June 2018 was ₹ 10 lakh. The full value of the consideration received as a result of the transfer of land by B as capital would be taken as:

1. ₹ 1 lakh

2.₹ 2 lakh

3.₹ 5 lakh

4.₹ 10 lakh

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  1. B joined Avtar & Co. as a partner on 1st June 2020. He contributed his vacant land in the firm as his capital which was recorded in the books of the firm at ₹ 5 lakh. The land was inherited by B from his father in April 2010 and the Fair Market Value (FMV) on that date was ₹ 2 lakh. The land was originally acquired by his father in August 2005 for ₹ 1 lakh. The Fair Market Value (FMV) on 1st June 2018 was ₹ 10 lakh. The full value of the consideration received as a result of the transfer of land by B as capital would be taken as:
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