A and B form the AB equal general partnership. A contributes \($50,000\) cash and a parcel of land with a fair market value of \($50,000\) and an adjusted basis of \($20,000,\) while B contributes \($100,000\) cash. A and B agree to comply with The Big Three, to share all profits and losses equally, and to use the traditional method in making § 704(c) allocations.

(a) If AB sells the parcel of land for \($70,000,\) what are the tax consequences to A and B?

(b) If AB sells the parcel of land for \($40,000,\) what are the tax consequences to A and B?