Problem 18-37 (LO. 6) Gail and Harry own the GH Partnership. They have conducted the business as a partnership for 10 years. The bases for their partnership interests are as follows. Gail Harry $100,000 $150,000 GH Partnership holds the following assets. Asset Basis Fair Market Value Cash $10,000 $10,000 Accounts receivable 30,000 28,000 25,000 Inventory Building 100,000 26,000 150,000 400,000 Land 250,000 * The straight-line method has been used to depreciate the building. The accumulated depreciation is $70,000. Gail and Harry sell their partnership interests to Keith and Liang for $307,000 each. a. Determine the tax consequences of the sale to Gail, Harry, and GH Partnership. Gail has a total recognized gain is $ 207,000 x , of which $ 207,000 X is classified as a long-term capital gain and $ 0 X is classified as ordinary income. , of which $ 157,000 X is classified as a long-term capital gain and $ Harry has a total recognized gain is $ 157,000 0 x is classified as ordinary income