Step #$2$: Calculate ordinary gain attributable to hot assets:

$\backslash$table$[[2.$ Cat,Tax Basis,FMV$,$Gain $($Loss$),$Marty's Share$],[$Receivables$,,,,],[$Inventory$,,,,],[$Total$,,,,]]$

Step #$3$: Compute capital gain:

$\backslash$table$[[$Total gain $($computed in Step #$1),],[$Ordinary gain $($computed in Step #$2),],[$Capital gain,$]]$

Requirement #$2$:

Wendy and Ruth each have a basis in MBRC of $$55,000$ before any purchase of Marty's interest. What are Wendy's and Ruth's bases in their partnership interests following the purchase of Marty's interest?

$\backslash$table$[[,$Wendy,Ruth$],[$Original basis,,$],[$Cash paid for Marty's interest,,$],[$Assumption of Marty's debt,,$],[$Basis after purchase,,$]]$

Requirement #$3$:

If MBRC liquidates Marty's partnership interest with a proportionate distribution of the partnership assets $($ $$25,000$ deemed cash from debt relief, $$15,000$ actual cash, and $50\%$ of the remaining assets$),$ does Marty recognize any gain or loss? Provide a brief explanation.