. Shaws adjusted basis for her partnership interest in Shaw & Zack was $60,000. In complete liquidation of her interest in Shaw & Zack, Shaw received cash of $44,000 plus the following assets: Adjusted Basis to Shaw & Zack Fair Market Value toShaw & Zack LandTract A $24,000 $10,000 LandTract B 8,000 8,000 How much is Shaws basis for Tract B?

a. $16,000

b. $8,000

c. $ 7,111

d. $ 4,000

20. Albin is a retired partner of Brill & Crum, a personal service partnership. Albin has not rendered any servicesto Brill & Crum since his retirement over 10 years ago. Under the provisions of Albins retirement agreement, Brill & Crum is obligated to pay Albin 10 percent of the partnerships net income each year. In compliance with this agreement, Brill & Crum paid Albin $25,000 this year. How should Albin treat this $25,000?

a. Not taxable

b. Ordinary income

c. Short-term capital gain

d. Long-term capital gain