Gils outside basis in his interest in the GO Partnership is $100,000. In a proportionate nonliquidating distribution, the partnership distributes to him cash of $30,000, inventory (fair market value of $40,000, basis to the partnership of $20,000), and land (fair market value of $90,000, basis to the partnership of $40,000). The partnership continues in existence.

a.Does the partnership recognize any gain or loss as a result of this distribution? Explain.

b.Does Gil recognize any gain or loss as a result of this distribution? Explain.

c.Calculate Gils basis in the land, in the inventory, and in his partnership interest immediately following the distribution.