Tarring ton and Xavier are 60/40 partners in the TX Partnership, a cash basis tax entity with the following balance sheet: On the balance sheet date, the Section 1231 assets have a depreciation recapture potential of $25,000. Also on the balance sheet date, Tarrington purchases Xavier's 40% interest in the partnership, paying Xavier $204,000 in cash and assuming Xavier's share of the partnership liabilities. As a result of this buyout of his partnership interest, what is the ordinary gain on sale that Xavier should report on his individual tax return? Cadwallader has had a 30% interest in C&C Associates, a partnership, since 20X9. In 20X14, the partnership is liquidated. The partnership's only assets at the time of liquidation are $50,000 in cash and land with a fair market value of $60,000 and a basis of $65,000. C&C Associates has no liabilities. Cadwallader's adjusted basis for her partnership interest is $34,500, and she receives $30,000 cash in liquidation of her entire interest. What amount and type of loss should Cadwallader recognize on her 20X14 tax return