1) Assume a partnership distributing non-cash property (only) in liquidation. Briefly explain what happens, from a partners standpoint, in the event of a basis mismatch i.e., when a receiving partners adjusted tax basis in her partnership interest is either higher or lower than the partnerships own adjusted tax basis in the distributed property.

2) ABC L.P., a calendar-year going-concern partnership, had three equal part-ners, A, B, and C. On March 31, 2020, partner C sold her entire partnership in-terest to D, who was accepted as a new/substitute partner effective April 1, 2020, the partnership changing its name on that date to ABD, L.P.

Briefly discuss how 2020 Schedule K-1 amounts should be split or allocated be-tween C and D on these facts. Include discussion of what choices the partnership itself might make and any timing aspects of Cs and Ds separate reporting obligations.