Answer:
some information is missing in this question:
the fair market value of Gina's interest int he partnership = $480,000 x 25% = $120,000
Gina is receiving $140,000 in cash, therefore, $20,000 can be considered goodwill.
Since Gina's outside basis is $90,000 (= $75,000 of cash + $15,000 of capital assets), she cannot claim any capital gain, instead she must declare an ordinary gain from the distribution (ordinary income) = $140,000 - $90,000 = $50,000.
The partnership can deduct Gina's gain ($50,000) since no part of it included property payment.
