Megan and Matthew are equal partners in the J & J Partnership (calendar year-end entity). On January 1 of the current year, they decide to liquidate the partnership. Megan's basis in her partnership interest is $119,000 and Matthew's is $42,600. The two partners receive identical distributions, with each receiving the following assets: (Leave no answer blank. Enter zero if applicable.) Cash Inventory Land Tax Basis $34,750 7,850 975 FMV $34,750 9,040 1,570 Totals $43,575 $ 45,360 a. What is the amount and character of Megan's recognized gain or loss? Neither gain nor loss recognized $73,925 of ordinary loss $2,095 of ordinary income O $73,925 of capital loss $2,095 of capital gain