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

		Tax Basis		FMV
Cash	$	46,200		$	46,200
Accounts receivable		15,400			30,800
Inventory		82,500			122,100
Totals	$	144,100		$	199,100

On December 31, Taurin distributes $15,400 of cash, $10,267 (FMV) of accounts receivable, and $40,700 (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 $40,883.

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

distribution?

b. What is Emmas basis in the distributed assets?

c1. If Emmas basis before the distribution was $56,258 rather than $40,883, what is Emmas recognized gain or loss?

c2. What is her basis in the distributed assets?

Please explain calculations as best as possible; thank you!