Andrew, Leslie, and Jame are equal partners in a partnership. Andrew contributed land with a tax basis of $10,000 and a value of $50,000, Leslie and Jame each contributed $50,000 of cash, which was invested in AAA-rated debt instruments. The land is now worth $90,000, and the debt instruments are now worth $120,000. Assume the partnership has a Rule 754 election in effect.

a. What are the consequences if Jamie sells his interest in the partnership to Marc for $70,000? (Assume Jamies outside basis is still $50,000)

b. What are the consequences if Andrew sells his interest in the partnership to Marc for $70,000? (Assume Andrews outside basis is still $10,000).