In their K entity, D and E share profits and losses in a ratio of 40:60. On 1 January 20X1, a K entity buys a depreciable asset under the following terms. $100,000 Down Payment + 400,000 N/R Loan $500,000 Purchase Price The K entity takes depreciation of $50,000 per year. In 20X3, the asset's 704(b) book value and adjusted basis (AB) are $350,000 ($500,000 - $150,000 [accumulated depreciation]). Calculate minimum gain, assuming the nonrecourse (N/R) loan is: (a) $400,000, (b) $370,000