Problem 5. Four years ago, Leona, Harry, and Jeremiah formed an equal partnership to which Leona contributed Blackacre (value = $1000, basis = $600), Harry contributed nonmarketable securities (value = $1000, basis = $200), and Jermiah contributed $1000 cash. The partnership used the cash to buy Greenacre. All three assets are capital assets in the partnerships hands. On January 1 of this year, the partnerships balance sheet is as follows:

Asset	Basis	Book	FMV
Blackacre	$600	$1000	$1500
Greenacre	1000	1000	1500
Securities	200	1000	1500
					Capital Accounts
					Tax Book
				Leona	$600 $1000
				Harry	200 1000
				Jeremiah	1000 1000

On the current date, the following alternative distributions take place. What are the tax consequences to all parties of each of distribution?

(a) Jeremiah receives Blackacre in complete liquidation of his interest in the partnership. How would your answer change, if at all, if Blackacre were worth only $800 on the date of distribution?

(b) Harry receives Greenacre in complete liquidation of his interest in the partnership.

(c) Harry receives Blackacre in complete distribution of his interest in the partnership.