Question: Markell's basis in the Markit Partnership is $ 5 8 , 0 0 0 . In a proportionate liquidating distribution, Markell receives the following assets:

Markell's basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Markell receives the following assets:
Tax BasisFMVCash$ 8,000$ 8,000Land A$ 20,000$ 45,000Land B$ 20,000$ 25,000
a. How much gain or loss will Markell recognize on the distribution? What is the character of any recognized gain or loss?

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