Kate is a partner in the EK Partnerships and her basis is $40,000 prior to any distributions. During the year, the EK Partnership makes a non-liquidating distribution (operating) to Kate in cash of $10,000 and land having a fair market value of $50,000 and an adjusted basis of $40,000. Label your answers A-E below and indicate (1) the dollar amount and (2) a brief explanation or computation as appropriate.

a. How much gain is recognized by Kate on the distribution of cash? $_________

b. How much gain is recognized by Kate on the distribution of land? $_________

c. What is Kates basis in the land she receives $_________________

d. What is Kates basis in her interest after the distribution? $_______________

e. How much gain is recognized by the partnership on the distribution of the land? $________