I:17-51 Nonliquidating Distributions. Lynn’s basis in her partnership interest is $9,000 when she receives a nonliquidating distribution of $5,000 cash and land having a $6,000 adjusted basis and a $12,000 FMV.

a. What gain or loss does the partnership recognize when making the distribution?

b. What are the amount and character of the income or gain Lynn must recognize on the distribution?

c. What is Lynn’s basis in the land?

d. What is Lynn’s basis in her partnership interest after the distribution?