AC4600/6600 Spring 2023 Exam 3 2. Justin is a partner in the Dead Birds Partnership. Justin has an outside basis of $100,000 at the end of the current year prior to any distributions. On December 31, Justin receives a proportionate liquidating distribution of $25,000 cash, inventory with a fair market value of $40,000 and an inside tax basis of $30,000, and stock in a privately held corporation (not treated as cash) that was held by the partnership for several years with a $100,000 fair market value and an inside basis of $75,400. Dead Birds Partnership has no debt. Answer the following questions. (Worth 12 total points; each question is worth 3 points) a. How much gain or loss does the partnership recognize on the distribution of the inventory and stock? C. b. How much gain or loss does Justin recognize on the distribution? 6871 What is Justin's basis in the inventory received in the distribution? 7500 (5,300) d. What is Justin's basis in the private company stock received in the distribution?