. According to the IRS, what items are included in unrealized receivables for these purposes?

2. According to the IRS, what items are included in inventory for these purposes?

3. If a partner sells an interest in a partnership in which his or her basis before the transaction is $100, the sales price is $150, the partnership has no unrealized receivables, and the partners share of the inventory of the partnership had a basis of $50 and a fair market value of $40, what dollar amounts of ordinary or capital gains or losses does the partner report? Assume that the partnership interest is a capital asset, there are no partnership liabilities, and that there are no at risk or passive activity issues.

Please answer each question in complete sentences, and cite name and number of the IRS publication or form/instruction where you found each answer, and the page number on which the answer is found. Use your own words in the answer do not copy the IRS language