Several Years Ago, the Jaymo Partnership Purchased 2,000 Shares of ABCO

Several years ago, the Jaymo Partnership purchased 2,000 shares of ABCO stock publicly traded) for $40,000; the stock now has a fair market value of $90,000. Jaymo owns no other securities. If this stock is distributed to Jason in liquidation of his 30% partnership interest, a portion of the distribution is treated as a cash distribution, and, because the security is appreciated, a portion is treated as a property distribution.