Both Flex and Felix recognize the gairu'loss in the previous set of facts. DDE recognizes the $513,000 as a gain but DUE. can not recognize the loss on the distribution of the equipment because the loss on the pnropertj,F is distributed to a related person. Rex is a more than BEBE shareholder {in a non prorata distribution] assuming that Felix received the accounts receivable and equipment and the assumed accounts payable. Part C: The answer to the quesiion is no. Felix will not receive income when the accounts receivable is collected because his basis in the accounE receivable will be $l,DD. This amount is equal to the amount to he collected {DEC has already recognized the income under the accrual method when the accounts receivable was created]. Part1]: The answer to the question is no. Felix Twill not get a second deduction because when the accounts pavable is paid DEE aireadv took the deduction under the accrual method when the liability was created [assuming that Rex is a corporate shareholder of DEE}