Dan is a 25% partner (capital and profits) in Dan&Dave, a general partnership, and Dave is a 75% partner.

During the year, Dan sold his partnership interest to Derek for $275,000. Dans outside basis at time of sale was $250,000. Immediately prior to the sale of Dans partnership interest, total inside basis (1,000,000) was equal to total outside basis ($1,000,000). The partnership had a valid 754 optional adjustment-to-basis election in place.

The partnership had the following assets at the time Dan sold his partnership interest:

Cash: $100,000

Land: FMV = $1,000,000; inside basis = $900,000 (land was purchased by the partnership)

Shortly thereafter (after the inside basis adjustment had been made) the partnership sold the Land for $1,200,000.

What amount of the gain on the sale of land is allocated to Derek?