Michelle pays $141,000 cash for Brittanys one-third interest in the Westlake Partnership. Just prior to the sale, Brittanys basis in Westlake is $105,300. Westlake reports the following balance sheet: (Leave no answer blank. Enter zero if applicable.)

			Tax Basis		FMV
Assets:
Cash		$	105,300		$	105,300
Land			210,600			317,700
Totals		$	315,900		$	423,000
Liabilities and capital:
Capital	Amy		105,300
	Brittany		105,300
	Ben		105,300
Totals		$	315,900

B. What is Michelles basis in her partnership interest? What is Michelles inside basis?

c. If Westlake were to sell the land for $317,700 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 if the land were sold for $317,700?

1. e1. Suppose Westlake has a 754 election in place. What is Michelles special basis adjustment?

2. e2. 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?