Matts outside basis in the partnership is $50,000 and Matt receives cash of $20,000 from the partnership upon complete proportionate liquidation. He also receives some inventory, basis $10,000, (FMV of $15,000). Matt loved the receptionist desk used for the business and Matt manages to get the desk as well upon the liquidation. The partnerships adjusted basis in the desk is $200.

a) How much capital loss, would Matt recognize on her tax return because of the liquidation?

b) How much basis Matt will have in the inventory and the desk?