54. Bella Partnership is an equal partnership in which each of the partners has a basis in his partnership interest of $10,000. Bella reports the following balance sheet:

Tax Basis FMV Assets Inventory $20,000 $30,000 Land 10,000 15,000 Tax Basis FMV Totals $30,000 $45,000 Liabilities and capital Capital—Toby $10,000 —Kaelin 10,000 —Andrew 10,000 Totals $30,000

a. Identify the hot assets if Toby decides to sell his partnership interest. Are these assets “hot” for purposes of distributions?

b. If Bella distributes the land to Toby in complete liquidation of his partnership interest, what tax issues should be considered?