Jerome's basis in his partnership interest is $50,000. Jerome receives a pro rata liquidating distribution consisting of $10,000 cash, land with a basis of $40,000 and a fair market value of $60,000, and his proportionate share of inventory with a basis of $30,000 to the partnership and a fair market value of $50,000. Assume that the partnership also liquidates. If there is no gain or loss or if an amount is zero, enter "0". a. How much gain or loss, if any, must Jerome recognize on the distribution? Jerome recognizes V of $:] as a result of the distribution. b. What basis will Jerome take in the inventory and land? c. If Jerome sells the land two years later for $50,000, what are the tax consequences to him? Jerome will recognize a V of $:] . d. What are the tax consequences to the partnership as a result of the liquidating distribution? V e. 15 any planning technique available to the partnership to avoid any \"lost basis" results? The "lost basisII of E related to the land likely arose because at some point in the past, that the partnership V previously make a 5 754 election which V last possible moment, liquidation of the partnership. f. Would your answers to parts (b) and (e) change if this had been a current distribution? V . It appears the disappearance of basis to the Jerome would have the $:] basis for the inventory, $:] basis in the land, and a $:] basis for the partnership interest. This is a 7 distribution in which the basis of distributed assets is v , thus the partnership v able to make a 754 election to restore the balance between inside and outside bases