Sophia Shore owns a one-third interest in the Seaside Partnership. Her basis for her interest is $15,000. The partnership prior to the distribution held the following assets:

	Basis	FMV
Cash	$40,000	$40,000
Accounts receivable	6,000	15,000
Land	17,500	35,000

Sophia and each of her partners receive as a current distribution $10,000 cash and accounts receivable with a basis to the partnership of $1,200 and a FMV of $3,000.

a. What gain will Sophia realize on the distribution?

b. What gain or loss will she recognize on the distribution?

c. What gain or loss will the partnership recognize on the distribution?

d. What is the basis to Sophia of her partnership interest after the distribution?

e. How would your answers to (b), (c), and (d) differ, if at all, if the distribution had been in complete liquidation of Sophia's interest in the partnership?