Basis in partnership interest; taxability on distributionsBetty’s basis in her partnership interest is $90,000 and she
receives distributions of $35,000 cash and inventory (basis to the partnership
of $22,000 and a fair market value of $28,000). No land is distributed.(A) How much gain or loss, if any, must Betty recognize as a
result of the distribution.(B) What basis will Betty take in the inventory?(C) What are the tax consequences to the partnership.(D) Can you recommend an alternate distribution?
(E) Would your answer to (A) or (B) change if this had been
a nonliquidating distribution?