David sells his 50% interest in the ALP Partnership to new partner Eric for $67,500. The partnership's assets consist of cash ($100,000), land (basis of $90,000, fair market value of $110,000), and inventory (basis of $40,000, fair market value of $60,000). David's basis in his partnership interest was $47,500. On the sale, David will recognize ordinary income of $10,000 and a capital gain of $10,000. Answer: True False