The Crimson Partnership Is a Service-Providing Consulting Firm, and Jana

True/False

The Crimson Partnership is a service-providing consulting firm, and Jana is a 20% general partner with a $100,000 basis in her partnership interest. Crimson's assets consist of unrealized receivables basis of $0, fair market value of
$400,000), cash of $300,000, and land basis of $200,000, fair market value of $300,000). If Crimson distributes
$200,000 of cash to Jana in liquidation of her interest in the partnership and Crimson does not liquidate), Jana will recognize ordinary income of $80,000 and a capital gain of $20,000.