The December 31 Balance Sheet of the Calendar Year JKL $$\begin{array} { l r r } & \text { Adjusted } \\& \text { Basis } & \text { FMV } \\\text { Cash } & \$ 24,000 & \$ 24,000 \\\end{array}$$

The December 31 balance sheet of the calendar year JKL Partnership reads as follows. $$\begin{array} { l r r } & \text { Adjusted } \\& \text { Basis } & \text { FMV } \\\text { Cash } & \$ 24,000 & \$ 24,000 \\\end{array}$$ $\begin{array}{lrr}\text { Capital asset (nondepreciable) } & {33,000}&{105,000} \\\text { Total } & \$ 57,000 & \$ 129,000\\\\\text { Jan, capital } & \$ 19,000 & \$ 43,000 \\\text { Ken, capital } & 19,000 & 43,000 \\\text { Laura, capital } & \underline{19,000} & 43,000 \\\text { Total } & \$ 57,000 & \$ 129,000\end{array}$ Each partner shares in 1/3 of the partnership capital, income, gain, loss, deduction, and credit. On December 31, Jan sells her 1/3 partnership interest to Jennifer for $43,000 cash. Assume the partnership has a § 754 election in place.

a. What is the amount of Jennifer's step up adjustment under § 743b)?
b. If the nondepreciable capital asset is sold the next year for $120,000, determine the amount of gain that Jennifer will recognize on her tax return because of the sale.