Cliff's basis in his Aero partnership interest is $11,000. Cliff receives a distribution of $22,000 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:

Assets:____________Tax Basis__________FMV

Cash......................$ 22,000............$ 22,000

Investment.................8,800................8,800

Land..........................2,200...............35,200

Totals.................$ 33,000.............$ 66,000

Liabilities and capital:

Capital- Chris.......11,000

- Cliff.....................11,000

- Cooper................11,000

Totals..................$ 33,000

a. What is the amount and character of Cliff's recognized gain or loss? What is the effect on the partnership assets?

b. If Aero has a §754 election in place, what is the amount of the special basis adjustment?