2. XYZ partnership is equally owned by three partners. X sells his interest to M for $10,000 cash and M assume's debt. Before the sale of interest, here is a balance sheet :

	Basis	FMV
Cash	150,000	150,000
Accounts Receivable	0	30,000
Capital Assets	30,000	90,000
	180,000	270,000
	Basis	FMV
Note Payable	120,000	120,000
X capital	20,000	60,000
Y Capital	20,000	60,000
Z capital	20,000	60,000
	180,000	300,000

1. Calculate amount realized by X
2. Calculate gain realized by X
3. Calculate ordinary income and Capital Gain