Bust-out Partners had the following balance sheets at year-end:

On December 31, Jack sold his fifty percent interest in the partnership to an unrelated buyer for \(\$ 93,000\). None of the partnership's properties constitute inventory or unrealized receivables.

a. How much gain must Jack recognize on the sale?

b. What will be the buyer's tax basis in the newly acquired partnership interest?

c. Assume the partnership has a Section 754 election in effect. Determine the amount of the partnership's basis adjustment under Section 743(b), and allocate the adjustment among the partnership's assets.

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Cash Property 1 Property 2 Property 3 TOTAL ASSETS Capital, Sam Capital, Maggie Capital, Jack TOTAL LIABILITIES & CAPITAL Basis 30,000 33,000 42,000 27,000 132,000 33,000 33,000 66,000 132,000 FMV 30,000 51,000 60,000 45,000 186,000 46,500 46,500 93,000 186,000