1. In the introductory example above, what is the amount and character of the gain or loss realized by X upon sale of his partnership interest to Buyer? Assets Cash Accts Rec. Inventory Machinery Building Stock Goodwill Total AB/Book $240 75 90 55 200 90 0 $750 Liabilities & Capital FM V Liabilities $240 $150 60 150 100 500 300 300 $1650 Capital Accounts Tax/Book FMV A $200 $500 B 200 500 C 200 500 Total $500 $1500 2. A, B and C are equal