Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $120,000, she receives a liquidating distribution of $30,000 cash and a proportionate share of inventory having a partnership basis of $42,000 and a fair market value of $48,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? $ b. What is the amount of any gain or loss recognized on the liquidation? She has a recognized of $ on the liquidation