(4) Oscar has a partnership basis of ) of cash and an account receivable with a basis of $0 to the partnership (value is $15,000 ). He will recognize a X of 4 X. Feedback Check My Work b. In each of the four situations in part (a), are any planning techniques available to the partnership to avoid any "lost basis" results? For any of the four situations, students might answer "make a 754 election.". However, because the partnership is liquidating, this viable. Feedback Check My Work C. In the four situations in part (a), would your answers change if the transaction had been a current distribution? The results for transaction (1) change since gain recognition rules are the for both current and liquidating distributions. For transactions (2) and (3), the bases of capital assets be adjusted in Step 3 of a current distribution. In situations (2) to (4), there gains, losses, or basis adjustments in a current distribution, so adjustment is needed