Manny, Moe and Jack formed the MMJ partnership by each contributing assets with a basis and fair market value of $200,000. In the following year, Moe sold his one- third interest to Penny for $225,000. At the time of the sale, the MMJ partnership had the following balance sheet: Basis EMY Cash $200,000 $200,000 Land $400.000 $475.000 $600,000 $675,000 Shortly after Penny became a partner, MMJ sold the land for $475,000. What are the tax consequences of the sale to Penny and the partnership (1) assuming there is no Section 754 election in place (2) assuming the partnership has a valid Section 754 election? Susan has a 30% interest in the Jansen Partnership. She is to receive a guaranteed payment for services of $50,000. The partnership reports $30,000 of ordinary income and a $100,000 long-term capital gain before deducting the guaranteed payment What is her income from the partnership