Jnless you need to edit, it's safer to stay in Protected View Enable Editing 6 Points Negan contributes property with a fair market value of $400,000 and an adjusted basis of $150,000 to the WD Partnership. Lucille contributes $300,000 cash and agrees to serve as manager of the partnership for one year in exchange for $100,000. Six months after the contribution, Negan receives a cash distribution from the partnership of $50,000. a) The IRS, upon examination, asserts that the disguised sale rules apply to the distribution to Negan. Do you agree? Explain your answer. b) If the disguised sale rules apply, what are the tax consequences to Negan and WD