1. Bernard was a 25% partner in a law firm partnership. Upon his retirement he received a cash payment of $80,000 for his partnership interest when his outside basis was $42,500.

The partnership agreement was silent regarding goodwill. The partnership balance sheet just prior to Bernards retirement was as follows:

Cash $40,000

Marketable Securities Basis of $60,000 FMV of $90,000

Other Capital Assets basis of $70,000 FMV of $70,000

Uncollected Receivables- Basis $0 FMV $60,000

Partnership Goodwill Basis $0 FMV $60,000

Total Basis $170,000; Total FMV $320,000

1. What is Bernards total Gain?
2. What assets are considered partnership property for purposes of allocating his $80,000 payment between distributions & guaranteed payments?
3. How much of the $80000 is considered guaranteed payments?
4. How much of the $80,000 is considered a distribution?
5. What are the tax results and the character of the respective items of income?