paolo is a 50 partner in the capri partnership and has decided to terminate his partnership interest paolo is consi

a. If Paolo sells his partnership interest to Giuseppe and Isabella for $105,000, what is the amount and character of Paolo’s recognized gain or loss?
b. Giuseppe and Isabella each have a basis in Capri of $55,000 before any purchase of Paolo’s interest. What are Giuseppe and Isabella’s basis in their partnership interests following the purchase of Paolo’s interest?
c. If Capri liquidates Paolo’s partnership interest with a proportionate distribution of the partnership assets ($25,000 deemed cash from debt relief, $15,000 of actual cash, and half of the remaining assets), what is the amount and character of Paolo’s recognized gain or loss?
d. If Capri liquidates Paolo’s interest, what is Paolo’s basis in the distributed assets?
e. Compare and contrast Paolo’s options for terminating his partnership interest. Assume that Paolo’s marginal tax rate is 35 percent and his capital gains rate is 15 percent.