Last December 31, Ramon sold the 15 percent interest in the Del Sol Partnership that he had held for two years to Garrett for $515,000. Prior to selling his interest, Ramons basis in Del Sol was $297,000, which included a $165,000 share of nonrecourse debt allocated to him.

a. What is Garretts tax basis in his partnership interest?

b. If Garrett sells his partnership interest five months after receiving it and recognizes a gain, what is the character of his gain?