59. gil’s outside basis in his interest in the go partnership is $100,000. in a pro- portionate nonliquidating distribution, the partnership distributes to him
cash of $30,000, inventory (fair market value of $40,000, basis to the partnership of
$20,000), and land (fair market value of $90,000, basis to the partnership of
$40,000). the partnership continues in existence.
a. does the partnership recognize any gain or loss as a result of this distribution? explain.
b. does gil recognize any gain or loss as a result of this distribution? explain.
c. calculate gil’s basis in the land, in the inventory, and in his partnership interest immediately following the distribution.