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Problem $10-46($LO $10-4)($Algo$)$

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The Taurin Partnership $($a calendar$-$year$-$end entity$)$ has the following assets as of December $31$ of the current year:

Tax Basis FMV

Cash $ $48,600$ $ $48,600$

Accounts receivable $16,20032,400$

Inventory $85,500126,300$

Totals $ $150,300$ $ $207,300$

On December $31,$ Taurin distributes $$16,200$ of cash, $$10,800($FMV$)$ of accounts receivable, and $$42,100($FMV$)$ of inventory to Emma $($a one$-$third partner$)$ in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $$42,650.$

Problem $10-46$ Part c $($Algo$)$

Required:

c$1.$ If Emma's basis before the distribution was $$58,775$ rather than $$42,650,$ what is Emma's recognized gain or loss?

c$2.$ What is her basis in the distributed assets?