Rick is a partner in the Ten Hicks Partnership. This year, he received a distribution consisting of two properties.

Property 1 was worth $40,000 at the date of the distribution and had a tax basis to the partnership of $28,000. Property 2 was worth $60,000 and had a tax basis of $12,000. Rick’s tax basis in his partnership interest was $30,000 prior to the distribution. The partnership did not have any hot assets either before or after the distribution.

a. Will Rick recognize any gain or loss on receipt of the distribution?

b. What will be Rick’s tax basis in each of the properties received?

c. What will be his remaining tax basis in his partnership interest?