PROBLEM 4 A, B and C are equal partners in the ABC partnership. On January !, 2000, A's outside basis is $250 and ABC's balance sheet (including FMV's) is as follow: Assets Liabilities &Capital EMV Cash A/C Rec 75 Inv. Machinery 55 Building 200 Stock Goodwil 0 240 240 60 150 100 500 300 150 90 90 0300 lax 500 A 200 B 200 C 200 500 Total-60 1500 500 What are the tax consequences to A if A were to sell her interest to P for $500 cash? Assume that ABC purchased the machine three years ago for $120, and that $120 in depreciation has been taken on the building since its acquisition five years ago