Kerry Orange owned a 20% interest for 20 years in the T & T Partnership,...
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Accounting
Kerry Orange owned a 20% interest for 20 years in the T & T Partnership, which owns no unrealized receivables or inventory items. In the current year, he sold his interest for $30,000 and was relieved of his share of partnership liabilities of $2,200. At the date of sale, Oranges total basis in his partnership interest was $24,000. What gain or loss should Orange report?
$6,000 capital gain.
$3,800 ordinary income.
$8,200 capital gain.
$8,200 ordinary income.
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