Calculator Problem 11-35 (c) (LO. 3) Fern's basis in her partnership interest is $96,000. In a proportionate distribution in liquidation of the partnership, Fern receives $14,000 cash and two parcels of land with bases of $11,000 and $25,000, respectively, to the partnership. The partnership holds both parcels of land for investment, and the parcels have fair market values of $11,000 and $51,000 respectively. Round any division to two decimal places and use rounded amounts in subsequent computations.

a. Does Fern recognize any gain or loss on the distribution? No gain or loss is recognized

b. Fern's basis in the first property is $ , and her basis in the second property is $ .

c. If the land had been held as inventory, Fern would have allocated basis of $ and $ to the the inventory, and she would have realized and recognized a capital loss of $ .