Logan's Basis in His Partnership Interest Is $20,000 When He

Multiple Choice

Logan's basis in his partnership interest is $20,000 when he receives a pro rata nonliquidating distribution from the partnership of $22,000 cash and inventory with a basis of $2,000 and fair market value of $3,000.What is Logan's recognized gain on this distribution?

A) 0
B) $2,000
C) $3,000
D) $4,000