Question: Capital Partnership makes a proportionate liquidating distribution to one of its partners of $5,000 cash, $6,000 inventory (FMV = $10,000), and land with a $20,000

Capital Partnership makes a proportionate liquidating distribution to one of its partners of $5,000 cash, $6,000 inventory (FMV = $10,000), and land with a $20,000 basis and an $11,000 fair market value. What are the tax consequences to the partner of this liquidating distribution if his partnership outside basis is $25,000?

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