The SSC, a Cash-Method Partnership, Has a Balance Sheet That

The SSC, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year: $\begin{array}{lrr}&{\text { Basis }} & \text { FMV } \\\text { Cash } & \$ 180,000 & \$ 180,000 \\ \text { Accounts receivable }& -0- & 60,000 \\ \text { Land }&\underline{ 90,000} &\underline{ 120,000} \\\text { Total }& \$ 270,000& \$ 360,000\end{array}$
Susan, a one-third partner, has an adjusted basis of $90,000 for her partnership interest.If Susan sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Susan's gain or loss from the sale?

A) $10,000 capital gain.
B) $10,000 ordinary income.
C) $20,000 ordinary income; $10,000 capital gain.
D) $10,000 capital loss; $20,000 ordinary income.