The December 31,2012,balance sheet of DBW,LLP,a service-providing partnership is as follows:
The partners share equally in partnership capital,income,gain,loss,deduction,and credit.Capital is not a material income-producing factor to the partnership.On December 31,2012,partner Dana (who is an active managing partner in the partnership)receives a distribution of $120,000 cash in liquidation of her partnership interest under § 736.Dana's outside basis for the partnership interest immediately before the distribution is $90,000.How much is Dana's gain or loss on the distribution and what is its character?

Question

The December 31,2012,balance sheet of DBW,LLP,a service-providing partnership is as follows:
  The partners share equally in partnership capital,income,gain,loss,deduction,and credit.Capital is not a material income-producing factor to the partnership.On December 31,2012,partner Dana (who is an active managing partner in the partnership)receives a distribution of $120,000 cash in liquidation of her partnership interest under § 736.Dana's outside basis for the partnership interest immediately before the distribution is $90,000.How much is Dana's gain or loss on the distribution and what is its character?

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The Answer of The December 31,2012,balance sheet of DBW,LLP,a service-providing partnership is as follows:
  The partners share equally in partnership capital,income,gain,loss,deduction,and credit.Capital is not a material income-producing factor to the partnership.On December 31,2012,partner Dana (who is an active managing partner in the partnership)receives a distribution of $120,000 cash in liquidation of her partnership interest under § 736.Dana's outside basis for the partnership interest immediately before the distribution is $90,000.How much is Dana's gain or loss on the distribution and what is its character?

The December 31,2012,balance Sheet of DBW,LLP,a Service-Providing Partnership Is as Follows