Required information [The following information applies to the questions displayed below.] Grace, James, Helen, and Charles each owns an equal interest in GJHC Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, James's basis in his partnership interest is $66,250. For the taxable year, the partnership generates $79,200 of ordinary income and $37,200 of dividend income. For the first five months of the year, GJHC generates $20,500 of ordinary income and no dividend income. On June 1, James sells his partnership interest to Robert for a cash payment of $76,500. The partnership has the following assets and no liabilities at the sale date: (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Cash Land held for investment Totals Tax Basis $ 35,250 102,750 $ 138,000 FMV $ 35,250 123,450 $ 158,700 a. Assuming GJHC's operating agreement provides that the proration method will be used to allocate income or loss when partners' interests change during the year, what is James's basis in his partnership interest on June 1 just prior to the sale? Basis Required Information [The following Information applies to the questions displayed below.] Grace, James, Helen, and Charles each owns an equal Interest in GJHC Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, James's basis in his partnership Interest is $66,250. For the taxable year, the partnership generates $79,200 of ordinary Income and $37,200 of dividend Income. For the first five months of the year, GJHC generates $20,500 of ordinary Income and no dividend Income. On June 1, James sells his partnership Interest to Robert for a cash payment of $76,500. The partnership has the following assets and no liabilities at the sale date: (Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.) Tax Basis Cash Land held for investment Totals $ 35,250 102,750 FMV $ 35,250 123,450 $ 138,000 $ 158,700 b. What are the amount and character of James's recognized gain or loss on the sale? $1,875 of capital gain $1,875 of capital loss $1,875 of ordinary Income O $5,125 of ordinary Income Neither gain nor loss recognized Required Information [The following Information applies to the questions displayed below.] Grace, James, Helen, and Charles each owns an equal Interest in GJHC Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, James's basis in his partnership Interest is $66,250. For the taxable year, the partnership generates $79,200 of ordinary Income and $37,200 of dividend Income. For the first five months of the year, GJHC generates $20,500 of ordinary Income and no dividend Income. On June 1, James sells his partnership Interest to Robert for a cash payment of $76,500. The partnership has the following assets and no liabilities at the sale date: (Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.) Tax Basis Cash Land held for investment Totals $ 35,250 102,750 FMV $ 35,250 123,450 $ 138,000 $ 158,700 c. If GJHC uses an Interim closing of the books, what are the amount and character of James's recognized gain or loss on the sale? $5,125 of ordinary Income $310 of ordinary Income $5,125 of capital loss O $5,125 of capital gain