Shelby, a Partner in the STU Partnership, Received a Proportionate

True/False

Shelby, a partner in the STU partnership, received a proportionate nonliquidating distribution of $50,000 cash, unrealized receivables with a basis of $0 and a fair market value of $40,000, and land with a basis of $35,000 and a fair market value of $25,000. Her basis in the partnership interest immediately before the distributions was $70,000. She will recognize $0 gain on the distribution, and her basis in the receivables and land will be $0 and $20,000 respectively.