49. Challenge Partners had the following balance sheets at December 31 : Basis FMIV Cash 30, 000 30, 000 Accounts Receivable O 45, 000 Property 1 54, 000 60, 000 Property 2 36 , 000 45, 000 TOTAL ASSETS 120 , 000 180 , 000 Capital , Tina 40, 000 60, 000 Capital , Jane 40 , 000 60, 000 Capital , Karen 40 , 000 60, 000 TOTAL CAPITAL 120 , 000 180 , 000 On that date , it distributed Property 1 to Karen in complete liquidation of her interest in the partnership . a . Will Section 751 ( b ) apply to this distribution ?"