A partnership has the following assets. The book basis and tax basis are the same amount.Cash: Basis $7,000 Value $7,000Machine: Basis $10,000 Value $5,000Note payable: Basis $20,000 Value $20,000If t

A partnership has the following assets. The book basis and tax basis are the same amount.

Cash: Basis $7,000 Value $7,000

Machine: Basis $10,000 Value $5,000

Note payable: Basis $20,000 Value $20,000

If the note payable is a nonrecourse mortgage on the machine, what is the amount of the minimum gain?

$0

$3,000

$10,000

$15.000