Question - Harry has an outside basis of $100,000 in the HAB Partnership as of December 31 of the current year. On that date the partnership liquidates and distributes to Harry a proportionate distribution of $30,000 cash and inventory with an inside basis to the partnership of $36,000 and a fair market value of $40,000. In addition, Harry receives a filing cabinet which has an inside basis and fair market value of $100 and $250, respectively. None of the distribution is for partnership goodwill. How much gain or loss will Harry recognize on the distribution, and what basis will he take in the filing cabinet?