The adjusted basis of Mr. Einstein's partnership interest was $65.000. In a current distribution, Mr. Einstein received the following from the partnership Adjusted Basis Fair Market Value Cash $60,000 $60,000 Inventory 15,000 20,000 Land 15,000 5,000 90,000 85,000 In addition, Mr. Einstein's proportionate share of partnership liabilities declined by one-half or $10,000. The partnership had no other liabilities. 1. What is Mr. Einstein's recognized gain or loss? 2. What is the character or any gain or loss? (capital or ordinary) 3. What will be his basis in the inventory and the land