The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year:

	Tax Basis	FMV
Cash	$ 47,400	$ 47,400
Accounts receivable	15,800	31,600
Inventory	84,000	124,200
Totals	$ 147,200	$ 203,200

On December 31, Taurin distributes $15,800 of cash, $10,533 (FMV) of accounts receivable, and $41,400 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $41,767.

Required:

c1. If Emma's basis before the distribution was $57,517 rather than $41,767, what is Emma's recognized gain or loss?

c2. What is her basis in the distributed assets?