On August 31 of the Current Tax Year,the Balance Sheet

question 2

Essay

On August 31 of the current tax year,the balance sheet of the RBD General Partnership is as follows:
On that date,Rachel sells her one-third partnership interest to Lisa for $300,000,including cash and relief of Rachel's share of the nonrecourse debt.The nonrecourse debt is shared equally among the partners.Rachel's outside basis for her partnership interest is $250,000 (including her share of partnership debt).How much capital gain and/or ordinary income will Rachel recognize on the sale?

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Definitions:

Budget Balancing

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A severe global economic recession that occurred from late 2007 through mid-2009, characterized by widespread financial crisis, high unemployment, and significant drops in the economic activity.