ABC is an equal partnership in which each of the partners has an outside basis of $1,500 and a capital account of $1,000. ABCs balance sheet is as follows: Assets Liabilities & Capital Book FMV Cash 3000 3000 Loan 1500 Inventory 900 1500 Capital asset 600 1500 Capital Accounts 4500 6000 Book FMV A 1000 1500 B 1000 1500 C 1000 1500 3000 4500 Determine the tax consequences under section 751(b) if the partnership distributes the capital asset to A in complete liquidation of her partnership interest. Also, assuming that a valid section 754 election is in place, determine the amount and treatment of any section 734(b) adjustment to the ABC partnership arising out of this distribution.