2. Simplify Partnership was a general partnership that provided tax consulting services (and thus capital was not a material income-producing factor). Abel retired from the partnership. At the time of his retirement, the Simplify Partnership balance sheet appeared as follows:
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| Asset | Adj. Basis | Book | Partner | Tax | Book | |
| Cash | $180,000 | $180,000 | Abel | $90,000 | $160,000 | |
| Acct. Rec. | -0- | $60,000 | Baker |