• Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $35,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $14,200 cash. Matt receives $4,190 cash and a parcel of land with a $10,010 fair market value and a $5,400 basis to the partnership. Matcoy has no debt or hot assets.