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5 30 pts Cody and Sonia are equal partners in Partnership X, which they formed...

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Accounting

5 30 pts Cody and Sonia are equal partners in Partnership X, which they formed three years ago. The partnership uses the cash me....ud of accounting. At the end of the year, Cody sold all his partnership interest to Emma, an unrelated party to both Cody and Sonia, for $70,000. At the time of the sale, Cody has a $15,000 outside basis, Partnership X has no liabilities, and Partnership X's assets are as follows (none of which were contributed by partners): Adj. Basis FMV Cash $10,000 $10,000 Acct. Rec. -0- 20,000 Land 20,000 100,000 Collectibles 30,000 10,000 (a) If the partnership has made no Section 754 election, what are the tax consequences to Cody and Emma of the sale

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