Mercedes owns a 40% interest in Teal Partnership (basis of $35,000) which she sells to Eric for $60,000. Mercedes' recognized gain of $25,000 will be classified as capital gain.

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The Answer of Mercedes owns a 40% interest in Teal Partnership (basis of $35,000) which she sells to Eric for $60,000. Mercedes' recognized gain of $25,000 will be classified as capital gain.

Mercedes Owns a 40% Interest in Teal Partnership (Basis of $35,000)