Last year, Heather contributed land to the Fitness First Partnership (FFP). At the time, the land was held for investment and was worth $34,000 with an adjusted basis to Heather of $28,000. FFP made no distributions during last year, and Heathers basis in her partnership interest on December 31 of last year was $38,000. On January 1 of this year, FFP distributed $40,000 cash to Heather and distributed the land that was originally contributed by Heather to another partner, Steve. On the distribution date, the land was worth $37,000. Assume FFP reported no profit or loss this year. How much gain (if any) must Heather recognize as a result of the distributions? What is her basis in the partnership after the distributions? What basis does Steven take in the land distributed to him?