ABC AND D ARE EQUAL PARTNERS IN ABCD PARTNERSHIP.

THE PARTNERSHIP'S CURRENT BALANCE SHEET IS AS FOLLOWS:

ASSETSBOOK VALUEFMVCASH20002000ACCOUNTS RECEIVABLE 2500

INVENTORY

STOCK HELD AS AN

20002500

INVESTMENT

LAND HELD AS AN

1600016000INVESTMENT20002000

TOTAL ASSETS

LIABILITIES AND CAPITAL

2200028000RECOURSE DEBT1800018000CAPITAL A10002500CAPITAL B10002500CAPITAL C10002500CAPITAL D10002500TOTAL LIABILITIES AND CAPITAL2200028000

ASSUME PARTNER A AGREES TO SELL HIS INTEREST IN THE PARTNERSHIP

TO NEW PARTNER E FOR $ 2,500.00 CASH , PLUS ASSUMPTION OF HIS $ 4500

SHARE OF PARTNERSHIP DEBT.

TOTAL GAIN / LOSS RECOGNIZED BY A ( IF ANY ) ? CHARACTER OF RECOGNIZED GAIN / LOSS ( IF ANY)?