Josh has a 25% capital and profits interest in the calendar-year GDJ Partnership. His adjusted basis for his partnership interest on October 15 of the current year is $300,000. On that date, the partnership makes a proportionate liquidating distribution of the following assets to Josh.

Partnerships Basis in Asset Assets Fair Market Value Cash 70,000 70,000 Inventory 120,000 150,000

a. Determine Joshs basis in the inventory and his recognized gain or loss on the liquidating distribution, if any. b. Assume that in addition to the cash and inventory, GDJ distributed land to Josh having a basis to GDJ of $5,000 and a fair market value of $8,000. Determine Joshs basis in the inventory and the land and his recognized gain or loss on the liquidating distribution, if any.