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 $ 24,450 Lauren $ 24,450 On December 31 of the current year, the partnership makes a pro rata operating distribution of: Partner Distribution Santiago Cash $ 28,150 Lauren Cash $ 20,100 Property $ 8,050 (FMV) ($2,770 basis to partnership)