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At the end of last year, Catherine, a 30% partner in the KLM partnership, had an outside basis of $50,000 in her partnership interest. She

At the end of last year, Catherine, a 30% partner in the KLM partnership, had an outside basis of $50,000 in her partnership interest. She sold her partnership interest for $90,000. The partnership had $100,000 of unrealized receivables, and no debt. Calculate the amount and character of Catherines recognized gain or loss.

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