Santiago and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests: Partner Outside Basis

Santiago $ $22,000$

Lauren $ $22,000$

On December $31$ of the current year, the partnership makes a pro rata operating distribution of:

Partner Distribution

Santiago Cash $ $25,000$

Lauren Cash $ $18,000$

Property $ $7,000($FMV$)($$$2,000$ basis to partnership$)$

a$.$ What are the amount and character of Santiago's recognized gain or or loss? b$.$ What is Santiago's remaining basis in his partnership interest? c$.$ What are the amount and character of Lauren's recognized gain or loss? d$.$ What is Lauren's basis in the distributed assets? e$.$ What is Lauren's remaining basis in her partnership interest?