Answer:
Jerilyn will have a gain of $17,000 from sale of her interest
Explanation:
Jerilyn will recognize a gain on the sale of her interest and the gain amount would be $17,000 which is computed from the difference among her basis in APJ of $75,000 and sells her interest for $92,000 ($92,000 - $75,000).
She recognizes the gain as she receives the only cash for selling her interest and the amount is more than her basis in her partnership interest and also APJ has no hot assets, therefore, the gain will be recognized as capital.
