Janet, Karen, and Lisa are equal general partners in JKL Partnership. In Year 1 the partnership made liquidating distributions to each of the partners. Information about the assets distributed and each partner's adjusted basis in her partnership interest before the distribution are provided in the exhibit above. The partnership had only one liability, a $60,000 mortgage secured by land, which was assumed by the partner to whom the land was distributed. Calculate the amount of gain or loss recognized by the partnership and each of the partners. For each partner, also calculate the partner's basis in the assets distributed to that partner and the partner's post-distribution basis in her partnership interest.

How would your answer change if JKL was a S Corporation instead of a Partnership?