Question: Markell's basis in the Markit Partnership is $ 6 1 , 7 2 0 . In a proportionate liquidating distribution, Markell receives the following assets:

Markell's basis in the Markit Partnership is $61,720. In a proportionate liquidating distribution, Markell receives the following assets:
Tax BasisFMVCash$ 8,800$ 8,800Land A$ 21,200$ 46,800Land B$ 21,200$ 26,600
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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