Answer:
1. How much is Pablo s realized and recognized gain on the distribution?
Pablo's realized gain = $25,000 (cash) + $16,000 (cash receivable) + $80,000 (land) - $63,000 (basis) = $58,000
Pablo's recognized gain = $0, since the cash distribution reduces his partnership basis to $38,000 ($63,000 - $25,000), the receivables have a $0 basis, and land distributions are not recognized as gains.
2. What is Pablo's basis in the receivables, land, and partnership interest following the distribution?
Pablo's basis in the receivables = $0
Pablo's basis in the land = $63,000 - $25,000 = $38,000
Pablo's partnership interest = $0
