Required information [The following information applies to the questions displayed below.) AJ is a 30 percent partner in the Trane Partnership, a calendar year-end entity. On January 1, AJ has an outside basis in his Interest in Trane of $76,750, which includes his share of the $53.000 of partnership liabilities. Trane generates $43.500 of Income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV Inventory $58,750 $69,500 Land 31,500 25,750 Totals $90,250 $95, 250 c. What is AJ's basis in the distributed assets? Inventory Required information The following information applies to the questions displayed below.) AJ is a 30 percent partner in the Trane Partnership, a calendar year-end entity. On January 1, AJ has an outside basis in his interest in Trane of $76,750, which includes his share of the $53.000 of partnership liabilities. Trane generates $43,500 of income during the year and does not make any changes to its liabilities. On December 31, Trane makes a proportionate distribution of the following assets to AJ to terminate his partnership interest: (Leave no answer blank. Enter zero if applicable.) Tax Basis FMV Inventory $58,750 $69,500 Land 31,580 25,750 Totals $90,250 $95,250 d. If AJ sells the inventory four years after the distribution for $74,500, what is the amount and character of his recognized gain or loss? Neither gain nor loss recognized $13,050 of ordinary income $15,750 of ordinary income $13,050 of capital gain $13,050 of capital loss