Miranda Wrights a partner in a partnership receives a distribution of $140,000 and property with a FMV of $80,000 and an inside basis of $70,000. Mirandas outside basis is $200,000.

Question 1: Explain whether the rules a distribution of money and property in which the distribution of money is considered prior to the distribution of property is better or worse tax-wise for the recipient partner than if the distribution of property was considered prior to the distribution of money.

Question 2: The rule is that if the inside basis of property distributed to a partner exceeds the partners outside basis, the partners basis in the property is the partners outside basis. Explain why this rule is consistent with basic tax principles.

Each question is worth 5 extra credit points. Answer in Canvas. You have until 11:59 on Sunday to complete. Do not overthink it. The correct answers are very straightforward.