X is a one$-$third partner in the XYZ partnership. Partner X is distributed the following in complete liquidation of her partnership interest:

Basis FMV

Cash $$20,000$ $$20,000$

Inventory $$40,000$ $$50,000$

Land A $$35,000$ $$30,000$

$$95,000$ $$100,000$

X had a basis in her partnership interest of $$85,000.$ The remaining YZ partnership had the following remaining assets:

Basis FMV

Cash $$40,000$ $$40,000$

Inventory $$30,000$ $$50,000$

Unrealized Receiv. $$50,000$ $$50,000$

Land B $$30,000$ $$35,000$

Building $$45,000$ $$25,000$

The partnership has a Section $754$ election in effect.

Partner X$$s based in her partnership interest is $$180,000.$

$1.$ Describe the tax consequences to Partner X of the liquidating distribution. What is the amount and character of any gain or loss recognized? What is X$$s basis in the assets received?

ii$.$ How much of an adjustment to basis would each of the partnership assets have?