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can you please show me how to solve this? Kenneth's interest in the equal Island Partnership is sold to Kristen for $100,000 Cash. On the
can you please show me how to solve this? Kenneth's interest in the equal Island Partnership is sold to Kristen for $100,000 Cash. On the date of the sale, the partnership tax balance sheet and the agreed fair market values were as follows:Cash - \$340,000 (Adjusted Basis); \$180,000 (Fair Market Value); Inventory - \$-0- (Adjusted Basis); $80,000 (Fair Market Value); Other assets - $100,000 (Adjusted Basis); $120,000 (Fair Market Value); Total Assets - $440,000 (Adjusted Basis); $380,000 (Fair Market Value); Kenneth, capital - \$110,000 (Adjusted Basis); $95,000 (Fair Market Value); Croix, capital - \$110,000 (Adjusted Basis); $95,000 (Fair Market Value); Nassau, capital - \$110,000 (Adjusted Basis); $95,000 (Fair Market Value); Bermuda, capital - \$110,000 (Adjusted Basis); \$95,000 (Fair Market Value); Total Partner's Capital - $440,000 (Adjusted Basis); $380,000 (Fair Market Value). Assume Kenneth's basis for his partnership interest equals his capital account. As a result of the sale, Kenneth recognizes: No gain or loss. $20,000 ordinary income and $30,000 capital loss. $10,000 capital loss. $20,000 ordinary loss
can you please show me how to solve this?
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