Question: $ 2 0 , 0 0 0 cash. What is the amount and character of Sarah's recognized gain or loss and what is her basis

$20,000 cash. What is the amount and character of Sarah's recognized gain or loss and what is her basis in her partnership interest?
Multiple Choice
$0 gain, $36,000 basis
$20,000 ordinary income, $36,000 basis
$20,000 ordinary income, $56,000 basis
$0 gain, $56,000 basis
$ 2 0 , 0 0 0 cash. What is the amount and

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