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

I/S Book O/S Book

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

Inventory 87,000 87,000 A Capital 155,000 155,000

Land #1 125,000 125,000 B Capital 155,000 155,000

Land #2 93,000 93,000 C Capital 155,000 155,000

The FMV of the partnership's assets as of March 31, 2020 were as follows: Cash $160,000; Inventory, $120,000; Land #1, $190,000 and Land #2, $145,000.

Assume A 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.

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

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

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

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