1. Consider each of the following independent situations, and answer the following questions. For each fact pattern, indicate:
2. • Whether the partner recognizes gain or loss. 
3. • Whether the partnership recognizes gain or loss. 
4. • The partner’s adjusted basis for the property distributed. 
5. • The partner’s outside basis in the partnership after the distribution.
6. In each case, assume the partnership owns no hot assets. Show your calculations in Microsoft Excel using a template similar to the format shown in Concept Summary 21.4. You will use “sum,” “min,” and “max” formulas. 
7. a. Kim receives $20,000 of cash in partial liquidation of her interest in the partnership. Kim’s outside basis for her partnership interest immediately before the distribution is $3,000. 
8. b. Kourtni receives $40,000 of cash and land with an inside basis to the partnership of $30,000 (value of $50,000) in partial liquidation of her interest. Kourtni’s outside basis for her partnership interest immediately before the distribution is $80,000. 
9. c. Assume the same facts as in part (b), except that Kourtni’s outside basis for her partnership interest immediately before the distribution is $60,000. 
10. d. Klois receives $50,000 of cash and inventory with a basis of $30,000 and a fair market value of $50,000 in partial liquidation of her partnership interest. Her basis was $90,000 before the distribution.