11- Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000), and inventory (basis of $30,000, fair market value of $70,000). After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

a.$70,000 loss; $100,000 (land); $30,000 (inventory).

b.$80,000 loss; $90,000 (land); $30,000 (inventory).

c.$0 gain or loss; $170,000 (land); $30,000 (inventory).

d.$30,000 loss; $100,000 (land); $70,000 (inventory).

12- Night Watch, a calendar year S corporation, distributes $127,300 cash to its only shareholder, Bill, on December 31. Prior to the distribution, Bills basis in his stock is $152,760, Night Watch's AAA balance is $57,285, and Night Watch has $19,095 AEP.. What is Bills stock basis after the distribution?

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