Lindsey, Mick, and Christine are equal partners in a partnership that has $300,000 of cash and land with a tax basis of $1,500,000 and a value of $600,000. Each partner has an outside basis of $600,000. Christine sells her interest to Stephanie for $300,000; Christine's outside basis is $600,000

(a) If the partnership sells the land for $600,000 in the year following Stephanie's purchase of Christine's interest, what are the tax consequences to Stephanie if the partnership had a 754 election in effect when she acquired Christine's interest?

(b) If the partnership sells the land for $600,000 in the year following Stephanie's purchase of Christine's interest, what are the tax consequences to Stephanie if the partnership did not have a 754 election in effect when she acquired Christine's interest?