Lars Has a Basis in His Partnership Interest in XXL

Multiple Choice

Lars has a basis in his partnership interest in XXL of $100,000.He sells the partnership interest in XXL for $160,000.XXL is a cash-basis partnership which has accounts receivable with a $30,000 fair market value and a zero adjusted basis.Lars's share of these receivables is $10,000.What is the amount and character of the gain that Lars recognizes on the sale of his partnership interest?

A) $50,000 capital gain
B) $60,000 capital gain
C) $10,000 ordinary income and $50,000 capital gain
D) $10,000 ordinary income and $60,000 capital gain