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On December 31 of the current year, Fox sold his interest in a limited partnership...

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Accounting

On December 31 of the current year, Fox sold his interest in a limited partnership for $50,000 cash and relief of all partnership liabilities. On that date, the adjusted basis of Fox's partnership interest, after the increase for his share of current year partnership income, was $60,000 consisting of his capital account of $35,000 and his share of the partnership liabilities of $25,000. The partnership has no unrealized receivables or substantially appreciated inventory. What is Fox's gain or loss on the sale of his partnership interest?
Group of answer choices
$15,000 ordinary gain
$15,000 capital gain
$10,000 ordinary loss
$10,000 capital loss

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