QUESTION 7 The Balance Sheet of the equal MVR Partnership on August 31, 2020 is as follows: Cash - $300,000 (Adjusted Basis), 5300,000 (Fair Market Value) Unrealized Receivables - S-0- (Adjusted Basis): $60,000 (Fair Market Value) Capital Assets - 3210,000 (Adjusted Basis), $450,000 (Fair Market Value) Total Assets - $510,000 (Adjusted Basis), 5810,000 (Fair Market Value) Notes Payable - $150,000 (Adjusted Basis). $150,000 (Fair Market Value) Capital Accounts: Mercedes Capital - $120,000 (Adjusted Basis), 5220,000 (Fair Market Value). Velma Capital - $120.000 (Adjusted Basis) $220.000 (Fair Market Value) Rosetta Capital - $120.000 (Adjusted Basis), 5220.000 (Fair Market Value), Total Liabilities And Partners Capital - 5510,000 (Adjusted Basis) $810.000 (Fair Market Value) The Partnership makes a Liquidating Distribution to Mercedes of Cash of $50,000 Unrealized Receivables of $20,000 and Capital Assets worth (Falr Market Value) 5150,000. The remaining partners assume Mercedes share of the Partnership Liabilities. The Gain or Loss Realized (and Recognized) by Mercedes for the Liquidation of her Partnership Interestis OS -0- 5250,000 $220,000 $270,000