The JKLM Partnership owns the following assets on October 1 of the current year:

a. Which partnership items are unrealized receivables?
b. Is the partnership’s inventory substantially appreciated?
c. Assume the JKLM Partnership has no liabilities and Jack’s basis in his partnership interest is $76,875. On October 1 of the current year, Jack receives a $25,000 current distribution in cash, which reduces his partnership interest from one-fourth to one-fifth. What are the tax results of the distribution (i.e., the amount and character of any gain, loss, or income recognized and Jack’s basis in his partnership interest)?