Hayden's outside basis in his interest in HIGH Partnership is $420,000. In a proportionate non - liquidating distribution, the partnership distributes to him cash of $100,000, inventory (fair market value of $90,000, basis to partnership of $60,000), and land (fair market value of $100,000, basis to partnership of $75,000). The partnership continues in existence.
A. Does partnership identify any gain or loss as a result of this distribution?
B. Does Hayden identify any gain or loss as a result of this distribution?
C. Evaluate Hayden's basis in the land, in the inventory, and in partnership interest immediately subsequent the distribution.