The KT Partnership has two? partners,Kati and Tim.Each? partner's basis in his or her partnership interest is $19,000 before any distribution. The partnership distributes $20,000 cash to Kati and $18,000 cash to Tim.

Requirements

a.	Assuming a current? distribution, determine for each partner? (1) gain or loss recognized and? (2) basis in the partnership interest after the distribution.
b.	Assuming a liquidating? distribution, determine each? partner's gain or loss recognized.