Davids basis in the Jimsoo Partnership is $57,000. In a proportionate liquidating distribution, David receives cash of $7,800 and two capital assets: (1) land 1 with a fair market value of $21,600 and a basis to Jimsoo of $17,200, and (2) land 2 with a fair market value of $10,600 and a basis to Jimsoo of $17,200. Jimsoo has no liabilities.

c1. If the two parcels of land had been inventory to Jimsoo, what are the tax consequences to David (amount and character of gain or loss)?

c2. What is David's basis in distributed assets?