Wylie receives cash of $145,000 in liquidation of his partnership

Wylie receives cash of $145,000 in liquidation of his partnership interest, in which he has a basis of $110,000. The partnership owns no hot assets. After following all of the classification requirements of § 736, $100,000 of this amount is classified as a property payment and $45,000 is classified as a guaranteed payment.

As a result of the liquidation proceeds, how much will Wylie recognize as a capital gain or loss and how much will be ordinary income?

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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