Problem $3$

Karen has a basis in her partnership interest of $$24,000$ when she receives a distribution from the

partnership of $$12,000$ cash, and equipment with a basis of $$16,000($ $$24,000$ FMV$).$

a$.$ How much gain or loss must Karen recognize on the distribution?

b$.$ What is Karen's ending partnership basis?

c$.$ What is Karen's basis in the equipment?