The JKLM Partnership owns the following assers on October 1 of the current year

Asset	Partnerships Basis	FMV
Cash	$48000	$48000
Receivables	12000	12000
Inventory	21000	24000
Machinery	190000	240000
Land (Investment)	36500	76000
Total	$307500	$400000

Sale of the machinery for its FMV would result in $50,000 of sec:1245 depreciation recapture. Thus, the machinerys FMV and original cost are the same numerical value, $240,000.

Which partnership items are unrealized receivables?

Is the partnership appreciated?

Assume JKLM Partnership has no liabilities and Jacks basis in his partnership interest is $76,875. On October 1 of the current year, Jack receives a $25,000 current distribution in cash, which reduces his partnership interest from one-fourth to one-fifth. What are the tax results of the distribution (ie the amount and character of any gain , loss or income recognized and Jacks basis in his partnerships interest?