In each of the problems below, the ABC partnership has three equal partners A, B and C and the following balance sheet:

Assets Partners Capital

A.B. F.M.V. A.B. F.M.V.

Cash $60,000 $60,000 A $30,000 $45,000

Receivables 0 15,000 B 30,000 45,000

Inventory 15,000 30,000 C 30,000 45,000

Goodwill 15,000 30,000

Total $90,000 135,000 $90,000 $135,000

Problem 1

Partner A dies on the first day of the current year and under a buy-sell agreement his executor sells his interest to D for $45,000. What result to As estate if:

The partnership has made a 754 election?

The partnership has made no 754?

The partnership has made no section 754 election but the executor elects under section 732(d)?

Problem 2

A partner A dies on the first day of the current year and in an agreement arranged prior to his death, Services Partnership liquidates As general partnership interest for $45,000 of cash. What result to As estate

There is a specific provision in the agreement that $10,000 is for As interest in the goodwill and either a 754 for a 732(d) election is in effect?

Same as (a) above but neither a 754 nor a 732(d) election is in effects

The agreement is silent as to goodwill but either a 754 or a 732(d) election is in effect?

The agreement is silent as to goodwill and neither a 754 nor a 732(d) election effect?