Kevin recently decided to leave the Jackson Partnership. His tax basis in his one-fifth interest in the partnership was $50,000. In complete liquidation of that interest, he received cash of $20,000 and property with a tax basis of $18,000 and a fair market value of $60,000.

The distribution was not a disproportionate distribution subject to Section 751(b).

a. How much gain or loss will Kevin recognize on receipt of the liquidating distribution?

b. What will be his tax basis in the property received in the distribution?