Bill had an outside basis of $250,000 in the ABC Partnership when it distributed the following assets in a nonliquidating distribution from the partnership:

$100,000 in Cash

Accounts Receivable with an inside basis of $50,000 and a Fair Market Value of $80,000

Equipment with an inside basis of $75,000 and a Fair Market Value of $50,000

As a reult of this distribution

Bill has a remaining outside basis of $20,000 The partnership recognizes ordinary income of $30,000 The partnership recognizes a loss of $25,000 Bill has a remaining outside basis of $25,000