Wilma, Clay and Nathan are equal partners in the Cousins Partnership. At the end of the year, Wilma’s tax basis in her partnership interest was $14,000, Clay’s basis was

$25,000 and Nathan's basis $8,000. In a non-liquidating distribution, the partnership distributed investment property to Clay with a tax basis of $18,000 and a fair market value of $45,000.

a. How much gain must Clay recognize on receipt of the distribution?

b. What basis will he take in the property received from the partnership?

c. What will be his remaining basis in the partnership interest?