The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Tax Basis FMV Cash $ 47,880 $ 47,880 Accounts receivable 15,960 31,920 Inventory 84,600 125,040 Totals $ 148,440 $ 204,840 On December 31, Taurin distributes $15,960 of cash, $10,640 (FMV) of accounts receivable, and $41,680 (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 $42,120. Problem 16-46 Part

c (Algo) Required: c1. If Emma's basis before the distribution was $58,020 rather than $42,120, what is Emma's recognized gain or loss?

c2. What is her basis in the distributed assets?