The SE Partnership pays its only liability (a $130,000 mortgage) on April 1 of the current year and terminates that same day. Sonya and Ethan were equal partners in the partnership but have partnership bases immediately preceding these transactions of $120,000 and $190,000, respectively, including his or her share of liabilities. The two partners receive identical distributions with each receiving the following assets: FMV of asset Minus Difference Step 1: Partnership's basis for the asset Minus Increase to allocate Step 2: Ethan's basis in the assets Investigate Focus