Edna was a one-third partner in OldGrad partners until December 31, when her interest in the partnership was liquidate. Prior to the liquidation, her basis in her partnership interest was $45,000. She received $15,000 cash and property with a tax basis (to the partnership) of $50,000 and a fair market value of $64,000 in complete liquidation of her interest. The distribution was not a disproportionate distribution under Section 751(b).

1.How much gain or loss will Edna recognize upon receipt of the distribution?

2. What basis will she take in the property received from the partnership?