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The SSC Partnership balance sheet includes the following assets on December 31 of the current year: Basis FMV Cash $180,000 $180,000 Accounts receivable -0- 60,000

The SSC Partnership balance sheet 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 1/3 partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $120,000 cash, how much capital gain and ordinary income must Susan recognize from the sale?

Multiple Choice:

$30,000 ordinary income.

$30,000 capital gain.

$10,000 ordinary income; $20,000 capital gain.

$10,000 capital gain; $20,000 ordinary income.

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