59. Helen’s basis in Haywood Partnership is

$270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet just before the distribution:

Tax Basis FMV Assets Cash $220,000 $220,000 Stock

(investment) 480,000 220,000 Land 110,000 220,000 Totals $810,000 $660,000 Liabilities and capital Capital—

Charles $270,000

—Esther 270,000

—Helen 270,000 Totals $810,000

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

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