Ingrid, Bastian, and Tina are general partners of IBT Partnership. They share profits & losses 30/60/10%. IBT's balance sheet is as follows:

Assets

FMV

Adjusted basis

Cash

$100,00 $100,000

Inventory

$100,000 $70,000

Marketable securities

$140,000 $95,000

Building (net of depreciation)

$100,000 $90,000

Land (investment asset)

$160,000 $120,000

Total assets

$600,000 $475,000

Liability & capital accounts

Non-recourse debt

$400,000 $400,000

Ingrid's capital account

$70,000 $25,000

Bastian's capital account

$100,000 $80,000

Tina's capital account

$30,000 $(30,000)

Total liabilities & capital accounts

$600,000 $475,000

Requirements:

For each of the following independent situations determine:

1. Each partner's pre- and post-transaction basis in the partnership.
2. The partnership's basis in the assets on its balance sheet.
3. Amount and character of gain or loss recognized, if any.

IBT has a section 754 election in effect.

Situation 1: Tina sells one-half of her interest in IBT Partnership to Toni for $30,000 cash.

Situation 2: In a complete liquidation, Tina receives $20,000 of the inventory from the partnership.