Help Save & Exit Submit Required information Problem 10-59 (LO 10-4, LO 10-6) (The following information applies to the questions displayed below.) Helen's basis in Haywood Partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet just before the distribution: Part 1 of 2 Tax Basis points FMV Assets Cash Stock (investment) $ 220,000 $220,000 480,000 220,000 110,000 220,000 $810,000 $660,000 Print Totals Liabilities and capital Capital --Charles -Esther -Helen Totals $ 270,000 270,000 270,000 $810,000 Problem 10-59 Part a a-1. What is the amount and character of Helen's recognized gain or loss? $120,000 of ordinary income and $40,000 of capital gain $130,000 of ordinary income and $60,000 of capital gain $161,000 of capital loss $60,000 of capital gain Problem 10-59 Part a a-1. What is the amount and character of Helen's recognized gain or loss? $120,000 of ordinary income and $40,000 of capital gain $130,000 of ordinary income and $60,000 of capital gain $161,000 of capital loss $60,000 of capital gain Neither gain nor loss recognized a-2. Will the distribution have any effect on the partnership assets? Yes No Proy 19 20 of 20 Next > 20 Required information Problem 10-59 (LO 10-4, LO 10-6) The following information applies to the questions displayed below.) Part 2 of 2 Helen's basis in Haywood Partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet just before the distribution: points Basis PMV Print $220,000 $220,000 480,000 220,000 110,000 220,000 $810,000 $660,000 Assets Cash Stock (investment) Land Totals Liabilities and capital Capital -Charles -Esther -Helen Totals $ 270,000 270,000 270,000 $810,000 Problem 10-59 Part b b. If Haywood has a $754 election in place, what is the amount of the special basis adjustment Special basis adjustment $ 160,000 Decrease