Juanita owns a 75% interest in the JRZ Partnership. Four years ago, she inherited land from her grandmother. The grandmothers A/B in the property was $10,000; its FMV at the date of her death was $25,000. In the current year, Juanita had still not figured out how to use the land so, consequently, she sold the land to her partnership for $12,000.

a. What are the tax consequences to Juanita on the sale of the land to her partnership?

b. Two years later, the partnership sold the land to an unrelated third party for $30,000. What are the tax consequences to the partnership on the sale?