Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership and has an outside basis in his/her partnership interest of $104,000. On January 1 of the current year, Marco sells his partnership interest to Ryan for a cash payment of $137,000. The partnership has the following assets and no liabilities as of the sale date:

		Tax Basis		FMV
Cash	$	18,000		$	18,000
Accounts receivable		0			12,000
Inventory		69,000			81,000
Equipment		180,000			225,000
Stock investment		45,000			75,000
Totals	$	312,000		$	411,000

The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.

a. What are the hot assets [751(a)] for this sale?

b. What is Marcos gain or loss on the sale of his partnership interest?

d. What are Ryans inside and outside bases in the partnership on the date of the sale?