Erin's basis in her Kiybron partnership interest is $3,300. Erin receives a distribution of $2,200 cash from Kiybron in complete liquidation of her interest. Kiybron is an equal partnership with the following balance sheet:

Assets:___________....__Tax Basis______FMV

Cash...............................$ 2,200.......$ 2,200

Stock (investment)..........1,100..........2,200

Land...............................6,600..........2,200

Totals..........................$ 9,900.........$ 6,600

Liabilities and capital:

Capital- Erin.....3,300

- Carl................3,300

- Grace...........3,300

Totals..........$ 9,900

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

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