AJ is a 30 percent partner in the Trane Partnership, a calendar-year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $76,750, which includes his share of the $53,000 of partnership liabilities. Trane generates $43,500 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest:

	Tax Basis	FMV
Inventory	$ 58,750	$ 69,500
Land	31,500	25,750
Totals	$ 90,250	$ 95,250

Note: Leave no answer blank. Enter zero if applicable.

c. What is AJ's basis in the distributed assets?

Inventory

Land