in each of the following independent cases in which the partnership owns no hot asse 699226

In each of the following independent cases in which the partnership owns no hot assets, indicate:

• Whether the partner recognizes gain or loss.

• Whether the partnership recognizes gain or loss.

• The partner’s adjusted basis for the property distributed.

• The partner’s outside basis in the partnership after the distribution.

a. Kim receives $20,000 of cash in partial liquidation of her interest in the partnership. Kim’s outside basis for her partnership interest immediately before the distribution is $3,000.

b. Kourtni receives $40,000 of cash and land with an inside basis to the partnership of $30,000 (value of $50,000) in partial liquidation of her interest. Kourtni’s outside basis for her partnership interest immediately before the distribution is $80,000.

c. Assume the same facts as in (b), except that Kourtni’s outside basis for her partnership interest immediately before the distribution is $60,000.

d. Klois receives $50,000 of cash and inventory with a basis of $30,000 and a fair market value of $50,000 in partial liquidation of her partnership interest. Her basis was $90,000 before the distribution. All partners received proportionate distributions.