Pat sells his one-third interest in TP, a cash basis, calendar year partnership, to Vito for $15,000 cash. The partnership is service oriented and all partners are general partners. The balance sheet of TP immediately before the sale is as follows. Adjusted Basis per Books Market Value $18,000 3,000 -0- $18,000 6,000 9,000 12.000 $45.000 Cash Land Receivable Inventory Total 6.000 $27.000 Capital accounts Pat (1/3) Terry (2/3) Total $ 9,000 18.000 $27,000 $15,000 30.000 $45.000 The partnership uses the cash method, so revenue from the receivable has not been recognized. a) Classify TP's property (partnership) as either hot assets or not hot assets and allocate the basis and value to each category. b) Calculate Pat's gain on the sale of his partnership interest realized, recognized and character of the gain (e.g. capital).