George Received $40,000 Cash and a Capital Asset with a Basis

Multiple Choice

George received $40,000 cash and a capital asset with a basis and fair market value of $15,000 in a proportionate liquidating distribution.His basis in his partnership interest was $70,000 prior to the distribution.How much gain or loss does George recognize, and what is his basis in the capital asset received in the distribution?

A) $0 gain or loss; $15,000 basis.
B) $15,000 loss; $15,000 basis.
C) $15,000 gain; $15,000 basis.
D) $15,000 gain; $30,000 basis.
E) $0 gain or loss; $30,000 basis.