Michelle pays $120,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's interest in Westlake is $96,000. Westlake reports the following balance sheet:

Assets: Basis FMV
Cash $96,000 $96,000
Land 192,000 264,000
Totals $288,000 $360,000
Liabilities and capital:
Capital-Amy 96,000
-Brittany 96,000
-Ben 96,000
Totals $ 288,000