58. Erin’s basis in her Kiybron Partnership interest is $3,300. Erin receives a distribution of $2,200 cash from Kiybron in complete liquidation of her interest. Kiybron is an equal partnership with the following balance sheet:

Tax Basis FMV Assets Cash $2,200 $2,200 Stock (investment) 1,100 2,200 Land 6,600 2,200 Tax Basis FMV Totals $9,900 $6,600 Liabilities and capital Capital—Erin $3,300 —Carl 3,300 —Grace 3,300 Totals $9,900

a. What is the amount and character of Erin’s recognized gain or loss? What is the effect on the partnership assets?

b. If Kiybron has a §754 election in place, what is the amount of the special basis adjustment?