Davids basis in the Jimsoo Partnership is $61,500. In a proportionate liquidating distribution, David receives cash of $8,700 and two capital assets: (1) land 1 with a fair market value of $23,400 and a basis to Jimsoo of $18,550 and (2) land 2 with a fair market value of $11,275 and a basis to Jimsoo of $18,550. Jimsoo has no liabilities.

a. How much gain or loss will David recognize on the distribution? What is the character of any recognized gain or loss?

b. What is Davids basis in the distributed assets