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Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Adventure distributes $18,900 cash to Rufus in complete liquidation
Rufus is a one-quarter partner in the Adventure Partnership. On January 1 of the current year, Adventure distributes $18,900 cash to Rufus in complete liquidation of his interest. Adventure has only capital assets and no liabilities at the date of the distribution. Rufus's basis in his partnership interest is $25,200.
What are the amount and character of Rufus's recognized gain or loss?
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