5. C and D are equal partners in the CD partnership. C starts the year with an AB of 300 in his partnership interest while D starts the year with an AB of 600. The partnership distributes cash of 200 and inventory, AB 450 FMV 500, to C and cash of 200 and land, AB 300, FMV 700, attached liability 200, to D. The partnership continues operation thereafter. What consequences to the parties?