George, Helen & Issac agree to the formation of a general partnership (GHI) in which each will have the same one-third interest in the partnership's capital and profits/losses.

On January 1, 2020, George contributes cash in the amount of $540,000. Helen contributes Property #2, non-depreciable property with a FMV of $540,000 and an AB of $425,000. Issac contributes Land with a FMV of $540,000 and an AB of $625,000.

a) Assume that the partnership elected the remedial allocation method for Property #2 and that the partnership sold Property #2 for $510,000 on February 2, 2021. What is (i) the partnership's book and tax gain or loss as a result of the sale, and (ii) each partner's share of that gain or loss?

b) Assume that the partnership elected the traditional method for the Land and that the partnership sold the Land for $585,000 on April 22, 2021. What is (i) the partnership's book and tax gain or loss as a result of the sale, and (ii) each partner's share of that gain or loss?