Exercise 11-14 (Algorithmic) (LO. 4) When Magdalena's outside basis is $155,000, she receives a liquidating distribution of $38,750 cash and a proportionate share of inventory having a partnership basis of $54,250 and a fair market value of $62,000. The distribution results in a liquidation of both the partnership and her interest. a. How much is Magdalena's basis in the inventory received? 20,000 X $1 b. What is the amount of any gain or loss recognized on the liquidation? She has a recognized a capital loss of $ 23,000 X on the liquidation. Feedback Check My Work