hapter 21 Problems Saved 25 [The following information applies to the questions displayed below Cliff's basis in his Aero Partnership interest is $13,700. Clff receives a distribution of $29,900 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the following balance sheet art 1 of 2 Basis FMV Assets: Cash $ 29,900 $29,900 7,900 7,900 3,300 42,700 41,100 $80,5ee 57 nts Investment Land $ Totals eBook Liabilities and capital: Capital Hint 13,700 13,780 13,700 41,10e -Chris -cliff Print -Cooper eferences $ Totals a-1. What is the amount and character of Cliff's recognized gain or loss? O $16,200 of capital gain O $13,700 of ordinary income and $29,900 of capital loss O $16,200 of capital loss O 29 90n of ordinary income and $13 700 nf canital nain Next of 26 25 Prev 20 b. If Aero has a $754 election in place, what is the amount of the special basis adjustment? Special basis adjustment