Marty Byrde is a $50\%$ partner in the Missouri Belle Riverboat Casino Partnership $($MBRC$)$ and has decided to terminate his partnership interest. Marty is considering two options as potential exit strategies:

Sell his partnership interest to the two remaining $25\%$ partners, Wendy and Ruth, for $$105,000$ cash and the assumption of Marty's share of MBRC$\text{'}$s liabilities. Under this option, Wendy and Ruth would each pay $$52,500$ for $50\%$ of Marty's interest, or

MBRC liquidates Marty's partnership interest with a proportionate distribution of the partnership's assets.

Marty's basis in his partnership interest is $$110,000,$ including his share of MBRC$\text{'}$s liabilities. MBRC reports the following balance sheet as of the termination date:

$\backslash$table$[[$Assets:$,$Tax Basis,FMV$],[$Cash$,$$$80,000,$$$80,000$