Allison, Keesha, and Steven each own equal interests in KAS partnership, a calendar year-end, cash-method entity. On January 1 of the current year, Stevens basis in his partnership interest is $27,000. During January and February, the partnership generates $30,000 of ordinary income and $9,000 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $46,000. The partnership has the following assets and no liabilities at the sale date: Tax Basis FMV Cash $ 30,000 $ 30,000 Land held for investment 30,000 60,000 Totals $ 60,000 $ 90,000 Assuming KASs operating agreement provides for an interim closing of the books when partners interests change during the year, what is the amount of Stevens recognized gain or loss on the sale?

Continuing the prior problem what is the partnerships basis in the Land held for investment following the sale of the partnership interest from Steven to Juan?