Business, 15.04.2020 23:06 thuzar

Jackson is a 30 percent partner in the JJM Partnership when he sells his entire interest to Rhonda for $112,000 cash. At the time of the sale, Jackson's basis in JJM is $64,000. JJM does not have any debt or hot assets. What is Jackson's gain or loss on the sale of his interest?
A. $48,000 ordinary income. B. $24,000 capital gain and $24,000 ordinary income. C. $48,000 capital gain. D. Gain or loss cannot be determined.

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