26. Mrs. Zee sold her 30% interest in LPM partnership for $50,000. The partnership reports income on the accrual basis. Mrs. Zee's adjusted basis in the partnership interest was $30,000. The partnership had no liabilities at the date of the sale. The partnership had the following assets at the time of Mrs. Zee's sale: Adjusted Basis Fair Market Value Cash 10,000 10,000 Accounts receivable 9,000 9,000 Inventory 7,000 10,000 Machinery & equipment 12,000 20,000 Accumulated depreciation on Machinery 9,000 0 Land 80,000 100,000 Total assets 109,000 141,000 How much should Mrs. Zee report as capital gain and ordinary gain? A. Capital gain $20,000; Ordinary gain $0 D. Capital gain $16,400; Ordinary gain $3,600 C. Capital gain $13,700; Ordinary gain $6,300 D. Capital gain $-0-; Ordinary gain $20,000