John received a proportionate nonliquidating distribution of $10,000 cash and inventory with a zero basis and a fair market value of $12,000 from a partnership in which he has a basis of $8,000.

• What are the tax effects of these distributions?
• How would your answer change if this was a liquidating distribution?
• How would your answer change on the nonliquidating and liquidating distributions if his basis in the partnership was $15,000?