What amount and character of gain will spongebob recognize


Question - On December 1, Spongebob, a member of a three-person partnership, purchases investment securities from the partnership for their $37,000 FMV. All partners share profits and losses equally. The securities were acquired by the partnership for $25,000 cash in March of the current year. What amount and character of gain will Spongebob recognize because of this transaction?

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