Rita sells her 25% interest in the RSTU Partnership to Nancy for $90,000 cash. At the end of the year prior to the sale, Rita's basis in RSTU was $60,000. The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair market values were as follows.
Basis FMV
Cash
Accounts Receivable
Land
Total $ 80,000
-0-
208,000
$288,000 $ 80,000
60,000
180,000
$320,000
Determine the amount and character of any gain that Rita recognizes on the sale.