Victor is a 1/3 partner in the VRX partnership with an outside basis of $156,000 on January 1. Victor sells his partnership interest to Raj on January 1^st for $200,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: $$\begin{array} { | l | r | r | } \hline \text { Assets: } & \text { Basis } & \text { FMV } \ \hline \text { Cash } & \$ 160,000 & \$ 160,000 \ \hline \text { Receivables } & 50,000 & 50,000 \ \hline \text { Inventory } & 80,000 & 170,000 \ \hline \text { Land held for investment } & 60,000 & 40,000 \ \hline \text { Total } & \$ 350,000 & \$ 420,000 \ \hline \end{array}$$ The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 7 years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest?

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The Answer of Victor is a 1/3 partner in the VRX partnership with an outside basis of $156,000 on January 1. Victor sells his partnership interest to Raj on January 1^st for $200,000 cash. The VRX Partnership has the following assets and no liabilities as of January 1: $$\begin{array} { | l | r | r | } \hline \text { Assets: } & \text { Basis } & \text { FMV } \ \hline \text { Cash } & \$ 160,000 & \$ 160,000 \ \hline \text { Receivables } & 50,000 & 50,000 \ \hline \text { Inventory } & 80,000 & 170,000 \ \hline \text { Land held for investment } & 60,000 & 40,000 \ \hline \text { Total } & \$ 350,000 & \$ 420,000 \ \hline \end{array}$$ The equipment was purchased for $360,000 and the partnership has taken $90,000 of depreciation. The stock was purchased 7 years ago. What is the amount and character of Victor's gain or loss on the sale of his partnership interest?

Victor Is a 1/3 Partner in the VRX Partnership with an Outside