Paul is a partner in the Cortney, Delta, and Gamma Partnership. The adjusted basis of his partnership interest at the end of the year 2022 was $42,000, which includes his $15,000 share of partnership liabilities. Paul sold his interest in the partnership for $30,000 and was relieved of his share of partnership liabilities. 

What is the gain or (loss) Paul must recognize?  

Answer rating: 100% (QA)

When a partner sells their interest in a partnership they generally recognize a capital gain or ... View the full answer