In a proportionate liquidating distribution of his 40% interest in the RST LLC, Stuart received cash ($100,000), land (basis of $60,000 and value of $90,000), and unrealized receivables (basis of $0 and value of $40,000). In addition, Stuart is relieved of his $80,000 share of the LLCs liabilities. Stuarts basis in RST (including his share of LLC liabilities) was $200,000 immediately prior to this distribution

a. How much gain or loss does Stuart recognize on this distribution?

b. What is Stuarts basis in the receivables and land he receives in the distribution?

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.