Jermaine sells his 25% partnership interest having a $50,000 basis to Michelle for $75,000 cash. At the time of the sale, the partnership has no liabilities and its assets are as follows: Basis FMV Cash $25,000 $25,000 Unrealized receivables 0 50,000 Inventory 25,000 40,000 Land (Sec. 1231) 150,000 185,000 Jermaine and Michelle have no agreement concerning the allocation of the sales price. Ordinary income recognized by Jermaine as a result of the sale is A) $6,250. B) $12,500. C) $16,250. D) $22,500.

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