33- A taxpayer lived in an apartment building and had a 2-year lease that began 16 months ago. The taxpayer's landlord wanted to sell the building and offered the taxpayer $10,000 to vacate the apartment immediately. The taxpayer's lease on the apartment was a capital asset but had no tax basis. If the taxpayer accepted the landlord's offer, the gain or loss would be which of the following?

An ordinary gain.

A short-term capital gain.

A long-term capital gain.

A short-term capital loss.

34- Kerry Orange owned a 20% interest for 20 years in the T & T Partnership, which owns no unrealized receivables or inventory items. In the current year, he sold his interest for $30,000 and was relieved of his share of partnership liabilities of $2,200. At the date of sale, Orange's total basis in his partnership interest was $24,000. What gain or loss should Orange report?

$8,200 capital gain.

$8,200 ordinary income.

$3,800 ordinary income.

$6,000 capital gain.