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Cliff's basis in his Aero Partnership interest is $ 1 5 , 5 0 0 . Cliff receives a distribution of $ 2 5 ,

Cliff's basis in his Aero Partnership interest is $15,500. Cliff receives a distribution of $25,100 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet:
Tax Basis FMV
Assets
Cash $ 25,100 $ 25,100
Investment 18,30018,300
Land 3,10044,200
Totals $ 46,500 $ 87,600
Liabilities and capital
CapitalChris $ 15,500
CapitalCliff $ 15,500
CapitalCooper $ 15,500
Totals $ 46,500
Required:
a-1. What are the amount and character of Cliff's recognized gain or loss?
a-2. Will the distribution have any effect on the partnership assets?

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