QUESTION 2 The Balance Sheet of the equal JJC Partnership on August 31, 2023 is as follows: Cash - $300,000 (Adjusted Basis); $300,000 (Fair Market Value); Unrealized Receivables -$-0- (Adjusted Basis); $330,000 (Fair Market Value); Capital Assets - $240,000 (Adjusted Basis); $210,000 (Fair Market Value); Total Assets - $540,000 (Adjusted Basis); $840,000 (Fair Market Value). Notes Payable - $180,000 (Adjusted Basis); $180,000 (Fair Market Value); Capital Accounts: James Capital - $120,000 (Adjusted Basis); $220,000 (Fair Market Value); John Capital - $120,000 (Adjusted Basis); $220,000 (Fair Market Value); Clarence Capital - $120,000 (Adjusted Basis); $220,000 (Fair Market Value); Total Liabilities And Partners' Capital - $540,000 (Adjusted Basis); $840,000 (Fair Market Value). James sells his interest in the Partnership to someone outside of the Partnership for Cash of $250,000 and the assumption of his share of the Partnership Liabilities. How much, if any, of the Gain or Loss is Ordinary Income or Ordinary Loss that is recognized by James? $110,000. O $130,000. $ -0-. $ 20,000.

The Balance Sheet of the equal JuC Partrershp on August 31, 2023 is as folows: Cash - $300,000 (Adjusted Basis); $300,000 (Fair Market Value); Unrealized Recenables -\$-0-(Adjusted Basis); \$330,000 (Fair Market Valuo); Capital Assets - \$240,000 (ACjusted Basis); $210,000 (Fair Market Value); Total Assets - \$540,000 (Adjusted Bas is): $840,000 (Fair Market Value). Notes Payable - \$180,000 (Adjusted Basis); $180.000 (Fair Mavket Value); Capital Accounts: James Capial - $120.000 (Adjusted Basis). $220,000 (Fair Market Valuo); John Capital - \$120,000 (Adjusted Basis); \$220,000 (Fair Markot Value); Clarence Capital - $120,000 (Adjusted Basis); $2220,000 (Fair Market Value); Total Liablibies And Partners' Cephal - \$540,000 (Adjusted Basis); $940,000 (Fair Market Vatuo). Jarnes selis his interest in the Parthership to someone outside of the Partnership for Cash of $250,000 and the assumpton of his share of the Partnership Liabilies. How much, if ary, of the Gain or Loss is Ordinary Income or Ordinary Loss that is recognized by James? $110,000. $130,000. 80 . 520.000