ACCT 597 Assignment 7 The JKL partnership has the following balance sheet: FMV Tax Basis Cash 300,000 300,000 Inventory 1,500,000 900,000 Capital Assets 2,700,000 1,800,000 Totals 4,500,000 3,000,000 JKL has three equal partners. There are no Section 704(c) items. Each member has an outside tax basis of $1,000,000 in his or her partnership interest. The members are Julie, Karla, and Lydia. Member Karla wants to exit the partnership. The proposal is for Karla to receive 100% of the inventory valued at $1,500,000 in exchange for her interest. Julie and Lydia will remain in the partnership. REQUIRED: Explain how Section 751 will impact this transaction. Give specific numbers and steps. To explain the results, try to "tie out" all of your numbers in some logical fashion