Michelle pays $139,000 cash for Brittanys one-third interest in the Westlake Partnership. Just prior to the sale, Brittanys basis in Westlake is $105,000. Westlake reports the following balance sheet in the picture. a. What is the amount and character of Brittanys recognized gain or loss on the sale? b. What is Michelles basis in her partnership interest? What is Michelles inside basis? c. If Westlake were to sell the land for $312,000 shortly after the sale of Brittanys 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 Michelles 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?

Tax Basis FMV Assets: Cash Land Totals Liabilities and capital: Capital $105,00O $105,000 210,000 312,000 $315,000 $417000 - Amy 105,000 105,000 105,000 $315,00O Brittan)y Ben Totals