S Corporation

Baywatch partnership has 3 partners, Susan, Tina, and Vivian. Each partner has a basis in her partnership interest of $200,000. In the current year, Susan receives a liquidating distribution including $60,000 in cash and $120,000 in unrealized receivables. Susan takes a zero basis in the unrealized receivables.

1. Will Susan recognize a capital loss on this liquidation
2. and if so, what is the amount?
3. Please explain the tax treatment in language a non-accountant business person would understand.