Michelle pays $120,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,000. Westlake reports the following balance sheet:

Tax Basis FMV Assets: Cash $ 96,000 $ 96,000 Land 192,000 264,000 Totals $ 288,000 $ 360,000 Liabilities and capital: Capital - Amy 96,000 - Brittany 96,000 - Ben 96,000 Totals $ 288,000

What is Michelle's basis in her partnership interest? What is Michelle's inside basis?

. B If Westlake were to sell the land for $264,000 shortly after the sale of Brittany's partnership interest, how much gain or loss would the partnership recognize?

d. How much gain or loss would Michelle recognize?

e-1. Suppose Westlake has a 754 election in place. What is Michelle's special basis adjustment?

e-2. Suppose Westlake has a 754 election in place. How much gain or loss would Michelle recognize on a subsequent sale of the land in this situation?