Cari Hawkins is a 50% partner in the calendar year Hawkins-Henry Partnership. On January 1, 2015, her basis in her partnership interest is $160,000. The partnership has no taxable income or loss for the current year. In a nonliquidating distribution on December 15, the partnership distributes $120,000 cash to Cari and inventory proportionately to all partners. Caris share of the inventory has a basis of $50,000 (fair market value of $60,000). In January 2016, Cari asks your advice regarding treatment of 2015 operations and distributions. Using the format (1) facts, (2) issues, and (3) conclusion and analysis, draft a letter to Cari at the Hawkins-Henry Partnership (1622 E. Henry Street, St. Paul, MN 55118). Without including specific citations, your letter should address the following points and provide enough information for the client to understand the applicable tax provisions. a. How much gain or loss does the partnership recognize as a result of 2015 activities? b. How much gain or loss must Cari recognize in 2015? c. What is Caris basis in inventory received? d. What is Caris basis in her partnership interest at the end of 2015? e. Are there other considerations Cari and/or the partnership should address? Explain.