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Question- Show how the distribution affected each partner's basis in PQRS the partnership. All information provided from problem.

Assets Partnership's Basis EMV Cash $ 20,000 $ Receivables 0 20,000 40,000 100,000 The partnership has no liabilities, and each partner's basis in his or her partnership interest is $25,000. On December 30 of the current year, Paula receives a current distribution of inventory having a $10,000 FMV, which reduces her partnership interest from one-fourth to one-fifth. Inventory 80,000 $ 100,000 $ 160,000 Total Amount (1/4) (1/5) Distribution Distribution Difference Sec. 751 assets: Receivables $ $ 40,000 $ 100,000 10,000 $ 25,000 8,000 $ 18,000 2,000 7,000 (2.000) 3,000 Inventory 10,000 $ 140,000 $ 35,000 $ 26,000 $ 9,000 $ 10,000 $ 1,000 Total Sec. 751 assets Non-Sec. 751 assets: Cash 20,000 $ 5,000 $ 4,000 $ 1,000 $ (1,000) $ 20,000 $ 5,000 $ 4,000 $ 1,000 $ (1,000) Total non-Sec. 751 assets Paula Partner Q Partner R Partners Beginning basis Share of partnership income Deemed distribution of cash Distribution of remaining inventory Ending basis