Travis and Alix Weber are equal partners in the Tralix Partnership, which does not have a 754 election in place. Alix sells one-half of her interest (25 percent) to Michael Tomei for $34,500 cash. Just before the sale, Alixs basis in her entire partnership interest is $80,400, including her $34,500 share of the partnership liabilities. Tralixs assets on the sale date are as follows:

		Tax Basis		FMV
Cash	$	44,050		$	44,050
Inventory		34,500			108,000
Land held for investment		82,250			51,800
Totals	$	160,800		$	203,850

a. What are the amount and character of Alixs recognized gain or loss on the sale? (ordinary income and capital loss)

b. What is Alixs basis in her remaining partnership interest?

c. What is Michaels basis in his partnership interest?

d. Does the sale on partnership's basis have any effect in the assets?