Question :
Jason's outside basis in his interest in the KICK Partnership is $420,000. In a balanced nonliquidating distribution, the partnership distributes to him cash of $100,000, inventory (fair market value of $90,000, basis to the partnership of $60,000), and land (fair market value of $100,000, basis to the partnership of $75,000). The partnership continues in existence.
A. Does the partnership recognize any profit or loss as a result of this distribution?
B. Does Jason identify any gain or loss as a result of this distribution?
C. Determine Jason's basis in the land, in the inventory, and in the partnership interest instantly following the distribution.