On March $31,2020,$ the book and tax "balance sheet" of the ABC partnership was as follows:

I$/$S Book O$/$S Book

Cash $160,000160,000$ Liabilities N$/$A $0$

Inventory $87,00087,000$ A Capital $155,000155,000$

Land #$1125,000125,000$ B Capital $155,000155,000$

Land #$293,00093,000$ C Capital $155,000155,000$

The FMV of the partnership's assets as of March $31,2023$ were as follows: Cash $$160,000$; Inventory, $$120,000$; Land #$1,$ $$190,000$ and Land #$2,$ $$145,000.$

Assume Arlene agrees to leave the partnership and is willing to accept $$20,000$ of Cash, Inventory $($FMV $$40,000$ and I$/$S Basis $$29,000)$ and Land #$2($FMV of $$145,000$ and I$/$S Basis $$93,000)$ in exchange for her entire interest in the partnership.

What are the two $(2)$ journal entries required to be made on the books of the partnership as a result of the liquidation of Arlene's interest in the partnership? Make the journal entries.

Is the distribution to Arlene in liquidation of her interest proportionate or disproportionate? Explain your answer.

Regardless of your answer to part $($b$),$ above, assume for the purpose of this part that the distribution to Arlene is a proportionate distribution. What is the amount and character of the gain, if any, that Arlene must recognize in connection with the partnership's distribution of the Cash, Inventory and Land #$2$ to her? Explain your answer.

Regardless of your answer to part $($b$),$ above, assume for the purpose of this part that the distribution to Arlene is a proportionate distribution. What is Arlene's basis in the Inventory and Land #$2?$ Explain your answer