P1 is a one-third owner in ABC LLC. P1 sold his interest in ABC to B1 for $95,000 in cash (plus assumption of liabilities of ABC). Assume P1's inside and outside basis in ABC are equal. ABC's balance sheet at the dale of sale follows. Determine the amount and character of the gain or loss P1 will realize at the sale. Tax Basis FMV ASSETS: Cash 60,000 60,000 Receivables 120,000 120,000 Inventory 70,000 130,000 Land 50,000 55,000 300,000 365,000 LIABILITIES AND CAPITAL: Liabilities Capital - P1 Capital - P2 30,000 90,000 90,000 Capital-P3 90,000 300,000 00000 $10,000 ordinary gain and $10,000 capital gain $5,000 capital loss $20,000 ordinary gain and $15,000 capital loss $5,000 capital gain $5,000 ordinary income