77. LO 11.3] Roberta Wynn has been a partner in the Cato Partnership for a number of years. With the permission of the other partners, she sells her partnership interest to a third party. At the time of sale, her basis in her partnership is only $100. For the portion of the year to the date of sale, she is allocated a partnership loss of $2,100. If she receives $10,000 for her partnership interest, what are the tax consequences of the sale and the results of partnership operations in her final year?
78. [LO 11.3 & 11.4] Locate a recent appellate court case that has reversed a Tax Court decision regarding a partnership or S corporation tax issue.
    1. Summarize the facts, issues, and conclusions of the case.
    2. Explain why the appellate court reversed the Tax Court.
    3. Explain the impact this decision has on tax planning for clients.
79. [LO 11.3 & 11.4] The partners of JPG Partnership want to change the form of entity from a partnership to a corporation. The corporation can be formed in several ways: The partnership can distribute the assets to the partners who then contribute the assets to the corporation. The partnership can transfer the assets directly to the corporation. The partners can transfer their partnership interests to the corporation. Write a memo outlining the tax effects of the various methods of forming the corporation.