46- A partnership makes an operating distribution consisting of cash, hot assets, and land. The distribute partners outside basis just prior to the distribution (the prior basis) is less than the total basis of all the distributed property but more than the combined amount of cash and the partnerships basis in the hot assets. Which of the following choices best describes the computation of the amount of the partners recognized gain and basis in the land received?

Multiple Choice

• Gain	Outside basis in land
  Prior basis cash hot assets	Zero because prior basis < total distribution

• Gain	Outside basis in land
  Prior basis cash	Prior basis after computation of gain - land

• Gain	Outside basis in land
  Prior basis cash hot assets	Remaining basis after computation of gain.

• Gain	Outside basis in land
  Zero because prior basis > cash	Remaining basis after subtracting cash & basis of hot assets