The KN Partnership pays its only liability (a $50,000 mortgage) on April 1 of the current year and terminates that same day. Kelly and Nate were equal partners in the partnership but have partnership bases immediately preceding these transactions of $70,000 and $200,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets:

Assets	Partnership's Basis	FMV
Cash	$32,000	$32,000
Inventory	40,000	41,400
Receivables	8,400	7,000
Building	60,000	75,000
Land	27,000	25,000
Total	$167,400	$180,400

What are the tax implications to Kelly, Nate, and the KN Partnership of the April 1 transactions (i.e., basis of assets to Kelly and Nate, amount and character of gain or loss recognized, etc.)? Assume that no Sec. 754 election is in effect.