John has a 60% capital and profits interest in the JAS Partnership with a basis of $333,600, which includes his share of liabilities, when he decides to retire. Andrew and Stephen want to continue the partnership's business. On the date John retires (assume 2022), the partnership's balance sheet is as follows:

a.	What are the tax implications forJohn,Andrew,Stephen, and the JAS Partnership if Andrew and Stephen each purchase one-half of John's partnership interest for a cash price of $186,000 each? Include in your answer the amount and character of the recognized gain or loss, basis of the partnership assets, and any other relevant tax implications.
b.	What are the tax implications forJohn,Andrew,Stephen, and the JAS Partnership if the partnership pays John a liquidating distribution equal to 60% of each partnership asset other than cash plus $24,000 of cash? Assume the assets are easily divisible.

	Partnership's Basis	FMV
Assets:
Cash	$160,000	$160,000
Receivables	100,000	100,000
Building	200,000	300,000
Land	96,000	180,000
Total	$556,000	$740,000
Liabilities and capital:
Liabilities	$120,000	$120,000
Capital - John	261,600	372,000
- Andrew	87,200	124,000
- Stephen	87,200	124,000
Total	$556,000	$740,000
The partnership has claimed $60,000 of straight-line depreciation on the
building.