What is the amount and character of Mohammed gain or loss

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Question - Mohammed is a 50% partner in the perkins partnership. Mohammed sells one-half of his interest to Soren for $60,000 cash. Just before the sale, Mohammed's basis in his entire partnership interest is $150,000 including his $60,000 share of the partnership liabilities. Perkins assets on the sale date are as follows: Cash- FMV $80,000, Adjusted Basis $80,000; Inventory - FMV $180,000, Adjusted basis $60,000; Land - FMV $100,000; Adjusted basis $160,000. What is the amount and character of Mohammed's gain or loss on the sale?

a- 15,000 capital loss

b- 15,000 ordinary income; 30,000 capital gain

c- 45,000 capital gain

d- 30,000 ordinary income; 15,000 capital gain

Reference no: EM132769958

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