On April 1, 2012, George Hart, Jr. acquired a 25% interest in
the Wilson, Hart, and Company partnership by gift from his father.
The partnership interest had been acquired by a $50,000
cash investment by Hart, Sr. on July 1, 2006. The tax basis of
Hart, Sr.’s partnership interest was $60,000 at the time of the gift.
Hart, Jr. sold the 25% partnership interest for $85,000 on December
17, 2012. What type and amount of capital gain should
Hart, Jr. report on his 2012 tax return?