The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Tax Basis FMV Cash $ 50,760 $ 50,760 Accounts receivable 16,920 33,840 Inventory 88,200 130,080 Totals $ 155,880 $ 214,680 On December 31, Taurin distributes $16,920 of cash, $11,280 (FMV) of accounts receivable, and $43,360 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emmas basis in her partnership interest immediately prior to the distribution is $44,240. Problem 16-46 Part a (Algo)

a. What are the amount and character of Emmas recognized gain or loss on the distribution?

multiple choice

Neither gain nor loss recognized

$29,960 ordinary income

$9,080 ordinary loss

$29,960 capital gain