Partner A sold a 50% interest in ABC partnership for $18,500 when As adjusted basis in the partnership was $10,000. The partnerships property at the time of the sale consisted of $10,000 in cash, $20,000 in accounts receivable for which the partnership had a $0 basis, and a capital asset worth $15,000 in which the partnership had a $20,000 basis. The partnership also had $8,000 in liabilities at the time of the sale, $4,000 of which were allocable to A, that were assumed by As successor in interest. What is the amount and character of any gain or loss recognized by A on the sale?

	A.	Partner A recognizes an $8,500 capital gain, equal to the difference between the $18,500 realized on the exchange and As basis in the partnership of $10,000.
	B.	Partner A recognizes a $12,500 capital gain, equal to the difference between the $22,500 realized on the exchange and As basis in the partnership of $10,000.
	C.	Partner A recognizes $10,000 of ordinary income and a $1,500 capital loss, which net to As total gain of $8,500.
	D.	Partner A recognizes $10,000 of ordinary income and a $2,500 capital gain, which sum to As total gain of $12,500.