Anne, Charlotte and Emily are equal partners in the ACE partnership. On January 1 of this year, Annes outside basis is $250 and ACEs balance sheet (including FMVs) is as follows:

	Assets	Liabilities & Capital
	AB/Book	FMV	Liabilities
Cash	$240	$240	$150
Accts Rec.	75	60
Inventory	90	150
Machinery	55	100
Building	200	500
Stock	90	300
Goodwill	0	300
Total	$750	$1650
			Capital Accounts
			Tax/Book	FMV
		Anne	$200	$500
		Charlotte	200	500
		Emily	200	500
		Total	$600	$1500

What are the tax consequences to Anne if Anne were to sell her interest to Jane for $500 cash? Assume that ACE purchased the machine three years ago for $120, and that $120 in depreciation has been taken on the building since its acquisition five years ago.

Please provide correct answer and detailed explanation please? Thanks!