Grace, James, Helen, and Charles each own equal interests in GJHC Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Jamess basis in his partnership interest is $79,250. For the taxable year, the partnership generates $93,600 of ordinary income and $40,800 of dividend income. For the first 5 months of the year, GJHC generates $24,000 of ordinary income and no dividend income. On June 1, James sells his partnership interest to Robert for a cash payment of $87,250. The partnership has the following assets and no liabilities at the sale date:

		Tax Basis		FMV
Cash	$	34,500		$	34,500
Land held for investment		84,000			110,900
Totals	$	118,500		$	145,400

a. Assuming GJHCs operating agreement provides that the proration method will be used to allocate income or loss when partners interests change during the year, what is Jamess basis in his partnership interest on June 1 just prior to the sale? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

b. What is the amount and character of Jamess recognized gain or loss on the sale? c. If GJHC uses an interim closing of the books, what is the amount and character of Jamess recognized gain or loss on the sale?