Hannah Sells Her 25% Interest in the HIJK Partnership to Alyssa

Hannah sells her 25% interest in the HIJK Partnership to Alyssa for $120,000 cash. At the end of the year prior to the sale, Hannah's basis in HIJK was $70,000. The partnership allocates $15,000 of income to Hannah for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair market values were as follows. $\begin{array}{lrr}&\text {Adjusted}&\\&\text {Basis}&\text {FMV}\\\text { Cash } & \$ 100,000 & \$ 100,000 \\\text { Accounts Receivable } & -0- & 80,000 \\\text { Land } & \underline{240,000} & \underline{220,000} \\\text { Total } & \underline{\$ 340,000} & \underline{\$ 400,000}\end{array}$ on the sale.