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XY Partnership has the following assets and liabilities at year-end. The book basis and tax basis are the same amount. Assets Basis Value Machine $

XY Partnership has the following assets and liabilities at year-end. The book basis and tax basis are the same amount.

Assets Basis Value
Machine $ 10,000 $ 18,000
Building $80,000 $ 100,000
Note 1 $ 15,000 $ 15,000
Note 2 $90,000 $ 90,000

Note 1 is a nonrecourse note attached to the machine; Note 2 is a nonrecourse note attached to the building. What is the amount of the partnership's minimum gain?

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