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Beth has an outside basis of $100,000 in the BTDE Partnership as of December 31...

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Accounting

Beth has an outside basis of $100,000 in the BTDE Partnership as of December 31 of the current year. On that date the partnership liquidates and distributes to Beth a proportionate distribution of $50,000 cash and inventory with an inside basis to the partnership of $10,000 and a fair market value of $16,000. In addition, Beth receives an antique desk (not inventory) which has an inside basis and fair market value of $0 and $5,000, respectively. How much gain or loss will Beth recognize on the distribution, and what is her basis in the desk after the distribution?

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