37. 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

$30,000 cash. Just before the sale, Alix’s basis in her entire partnership interest is

$75,000, including her $30,000 share of the partnership liabilities. Tralix’s assets on the sale date are as follows:

Tax Basis FMV Cash $ 40,000 $ 40,000 Inventory 30,000 90,000 Land held for investment 80,000 50,000 Totals $150,000 $180,000

a. What is the amount and character of Alix’s recognized gain or loss on the sale?

b. What is Alix’s basis in her remaining partnership interest?

c. What is Michael’s basis in his partnership interest?

d. What is the effect of the sale on the partnership’s basis in the assets?