Dave is a 50% partner with Luis in the NP partnership. The partners share income and loss equally. He contributes land to the partnership worth $1,200 in which he has an adjusted basis of $400. The land is a capital asset to him and to the partnership. Two years later the partnership sells the land for $1,600.

A: How much gain or loss does the partnership recognize on the sale?

B: How much is allocated to each partner?

C: Does the answer to part (b) change (and if so how) if the partnership sells the land for $700? Explain.