Karli owns a 25% capital and profits interest in the calendar-year KJDV Partnership. Her adjusted basis for her partnership interest on July 1 of the current year is $300,000. On that date, she receives a proportionate current (nonliquidating) distribution of the following assets.

Partnerships Basis in Asset Assets Fair Market Value

Cash $120,000 $120,000

Inventory 70,000 80,000

Land (held for investment) 130,000 150,000

a. Calculate Karlis recognized gain or loss on the distribution, if any.

b. Calculate Karlis basis in the inventory received.

c. Calculate Karlis basis in land received. The land is a capital asset.

d. Calculate Karlis basis for her partnership interest after the distribution.