USA Accounting for sale of partnership interest

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Hello,

Can someone give me advice on how to record the sale of a partnership interest? I am looking at an LLC with two partners. Their capital account balances and basis are equal at 50k. Partner A is selling his interest to Partner B for 200k. They want to close the books at 12/31/12 so I think I need to make an entry zero Partner A's capital account balance and set up a note payable. Is that correct? What is the other side of the entry? I've read that I should reduce Partner B's capital account by the difference but then he would have a negative capital account. Does this look correct? Here's what I think

Dr. Partner A Capital Account $50,000
Dr. Partner B Capital Account $150,000
Cr. Note Payable to Partner A $200,000

Does anyone know the tax implications of the Note Payable? It's going to be paid off in 2 installments. Would this be a capital gain to Partner A for $150,000? Partner B gets no tax deduction for the payment?

Thank you very much for your help!
 

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