1. Suzy owns a 30% interest in the JSD LLC. In liquidation of the entity, Suzy receives a proportionate distribution of $30,000 cash, inventory (basis of $16,000, fair market value of $18,000), and land (basis of $25,000, fair market value of $30,000). Suzys basis in the entity immediately before the distribution was $80,000. As a result of the distribution, what is Suzys basis in the inventory and land, and how much gain or loss does she recognize?
   1. $0 basis in inventory; $25,000 basis in land; $0 gain or loss.
   2. $16,000 basis in inventory; $34,000 basis in land; $0 gain or loss.
   3. $16,000 basis in inventory; $25,000 basis in land; $9,000 loss.
   4. $18,000 basis in inventory; $32,000 basis in land; $0 gain.