william's basis in the WAM partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000. fair market value $40,000), and inventory (basis $30,000, fair market value $70,000). After the distribution, William's recognized gain or loss and his basis in the land and inventory are: a. $40,000 loss; $30,000 (land); $30,000 (inventory) b. $10,000 gain; $40,000 (land); $70,000 (inventory) c. $0 gain or loss; $30,000 (land); $70,000 (inventory) d. $0 gain or loss; $70,000 (land); $30,000 (inventory) e. None of the above barry owns a 25% interest in a continuing partnership. the partnership distributes a $20,000 year-end cash bonus to all the partners. in a proportionate nonliquidating distribution, the partnership also distributed property (basis of $2,000; fair market value of $3,000) to barry. Immediately before the distribution, Barry's basis in the partnership interest was $30,000. As a result of the distribution, Barry recognizes: a. No gain or loss b. Ordinary loss of $7,000 c. Capital loss of $7,000 d. Ordinary loss of $8,000 e. Capital loss of $8,000