Required information Problem 21-55 (LO 21-1, LO 21-6) (Algo) [The following information applies to the questions displayed below.) Michelle pays $134,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $98,200. Westlake reports the following balance sheet: Assets Cash Land Totals Liabilities and capital Capital-Amy Capital-Brittany Tax Basis $ 98,200 196,400 $294,600 $ 98,200 $ 98,200 FMV $ 98,200 303,800 $ 402,000 Capital-Ben $ 98,200 $ 294,600 Totals (Leave no answer blank. Enter zero if applicable.) Problem 21-55 Part a (Algo) a. What are the amount and character of Brittany's recognized gain or loss on the sale? O $134,000 of ordinary income and $134,000 of capital gain $3,000 of ordinary income and $11,000 of capital gain $35,800 of capital loss $35,800 of capital gain Neither gain nor loss recognized