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1. Whar are the Federal Income Tax consequences to the Gemstone Galleries partne

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1. Whar are the Federal Income Tax consequences to the Gemstone Galleries partnership of each of the following three withdrawals of Alicia from  the partnership:
a. Derrick and Jacob assume Alicia’s share of partnership liabilities and pay her 80,000 per year for next three years plus interest?
b. The partnership holds Alicia’s harmless against the liabilities of the partnership and pays her 80,000 per year for the next three years plus interest?
c. The partnership holds Alicia harmless against the liabilities of the partnership and distributes the George Woodman Collection to her?
2. What is Alicia’s basis in the partnerships that she inherited from Annabelle?
3. If option 1a is elected by Alicia, what is the basis in the partnership for Derrick and Jacob?
4. If option 1b is elected by Alicia, what is the partnership’s basis in its assets?
5. Should Sec. 754 be elected so Sec. 743 can be applied if option 1b is elected?
6. If option 1c is elected by Alicia, what is gain recognized by the partnership?

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