In each of the following four liquidating distribution scenarios, the partnership also liquidates. For each, determine the amount and character of any gain or loss to be recognized by each partner and the basis of each asset (other than cash) received. Assume for all scenarios that the distributions of hot assets are proportionate to the partners. a. Landon has a partnership basis of $40,000 and receives a distribution of $50,000 in cash. He will recognize of $ .
b. Mark has a partnership basis of $50,000. He receives $20,000 cash and a capital asset with a basis to the partnership of $25,000 and a fair market value of $40,000. is recognized by Mark. His basis in the capital asset is $ .
c. Neil has a partnership basis of $100,000. He receives $40,000 cash, inventory with a basis to the partnership of $30,000, and a capital asset with a partnership basis of $20,000. The inventory and capital asset have fair market values of $20,000 and $30,000, respectively. A is recognized by Neil as a result of the distribution. The capital asset is allocated a basis of $ and the inventory will have a basis of $ .