Task: Please assist with the given problem. Provide step by step calculations.
Mark, Pete and Mickey are equal partners in the 2MP Partnership. At the beginning of the year, Mark's basisin his partnership interest was $15,000, Pete's basis was $10,000, and Mickey's basis was $20,000. The partnership reported taxable income of $30,000 (allocated equally among the partners). At year end, the partnership made a non-liquidating distribution of $25,000 cash to Pete.
1) how much gain must Pete recognize on receipt of the cash distribution?
2) what will be his remaining basis in his partneship interest?
3) how would your answers change if the distribution had been received by Mickey, rather than Pete