Simon is a 30 percent partner in the SBD Partnership, a calendar-year-end entity. As of the end of this year, Simon has an outside basis in his interest in SBD of $188,000, which includes his share of the $60,000 of partnership liabilities. On December 31, SBD makes a proportionate distribution of the following assets to Simon: Cash Inventory Land Totals Tax Basis $ 40,000 55,000 30,000 FMV $ 40,000 65,000 45,000 $ 125,000 $ 150,000 Please help with requirement b1. b1. What are the tax consequences (amount and character of recognized gain or loss) of the distribution to Simon if the distribution is a liquidating distribution? Req B1 What are the tax consequences (amount and character of recognized gain or loss) of the distribution to Simon if the distribution is a liquidating distribution? $40,000 ordinary income and $40,000 capital gains $30,000 ordinary income and $55,000 capital gains $55,000 ordinary income and $30,000 capital loss $30,000 ordinary loss and $63,000 capital gains Neither gain nor loss recognized |