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The SSC, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year: Basis FMV Cash $
The SSC, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year:
Basis | FMV | |
---|---|---|
Cash | $ 180,000 | $ 180,000 |
Accounts receivable | 0 | 60,000 |
Land | 90,000 | 120,000 |
Total | $ 270,000 | $ 360,000 |
Susan, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Susan's gain or loss from the sale?
Group of answer choices
$10,000 capital gain
$10,000 ordinary income
$20,000 ordinary income; $10,000 capital gain
$10,000 capital loss; $20,000 ordinary income
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