Juan's Interest in the Gonzalez Partnership Is Liquidated When His

Multiple Choice

Juan's interest in the Gonzalez Partnership is liquidated when his basis in the interest is $30,000.He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and a fair market value of $30,000.Juan will recognize:

A) No gain or loss
B) $2,000 loss
C) $10,000 loss
D) $20,000 gain