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partnership sales and distribution this is problem one so let's look first at our balance sheet our information we've got three partners a B and C they're all equal partners so they're all one-third partners on January 1st the current year a is outside basis is $250 and a balance sheet is as follows so we've got some assets we've got some liabilities we've got the capital accounts all right so specifically the questions asking us to situations that we can do together a one of the tax consequences to partner a a partner a where to sell her interest for $500 also assume in this problem that the machinery was purchased three years ago for $120 and that depreciations been taking on the building and also part of the same problem P purchases the one-third interest from partner a for $500 cash and the questions asking what is the consequences to the selling partner and then what's the consequences to the partner that is purchasing the partnership interest all right so when we do a partner wh...
