The Taurin Partnership (calendar-year-end) has the following assets as of December 31 of the current year: On December 31. Taurin distributes $15.000 of cash. $10,000 (FMV) of accounts receivable, and $40.000 (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 $40.000. What is the amount and character of Emma's recognized gain or loss on the distribution? What is Emma's basis in the distributed assets? If Emma's basis before the distribution was $55,000 rather than $40,000. what is Emma's recognized gain or loss and what is her basis in the distributed assets