Current Distribution with Sec. 751. The JKLM Partnership owns the following assets on October 1 of the current year: "Sale of the machinery for its FMV would result in $50,000 of Sec. 1245 depreciation recapture. Thus, the machinery's FMV and original cost are the same numerical value, $240,000. a. Which partnership items are unrealized receivables? b. Is the partnership's inventory substantially appreciated? c. Assume the JKLM Partnership has no liabilities and Jack's basis in his partnership interest is $76,875. On October 1 of the current year, Jack receives a $25,000 current distribution in cash, which reduces his partnership interest from one-fourth to onefifth. What are the tax results of the distribution (i.e., the amount and character of any gain, loss, or income recognized and Jack's basis in his partnership interest)