At year$-$end, Barbara sells her $1/3$ interest in the ABC Partnership to James for $$143,000$ cash. At

the beginning of the year, the partnership had liabilities totaling $$18,000$ and Barbara's basis in her

partnership interest totaled $$60,000,$ which included her share of partnership liabilities. The

partnership has net income of $$156,000$ for the current year. On the date of the sale $($year$-$end$),$ the

basis and the agreed fair market values of the partnership$$s assets and liabilities are as follows:

Basis Market Value

Cash $ $90,000$ $ $90,000$

Accounts Receivable $-0-56,000$

Inventory $20,00036,000$

Land $120,000150,000$

Accounts Payable $12,00012,000$

Required:

a$.$ Using good form, determine Barbara$$s recognized gain or loss from the sale and also the

character of the gain or loss.

b$.$ Assume that Barbara$$s basis in her partnership interest at the beginning of the year was

$$80,000$ instead of $$60,000.$ Given this new fact, using good form, determine Barbara$$s

recognized gain or loss and also the character of the gain or loss.