The December 31,2012 Balance Sheet of GRT Services,LLP Reads as Follows

Multiple Choice

The December 31,2012 balance sheet of GRT Services,LLP reads as follows: The partners share equally in partnership capital,income,gain,loss,deduction,and credit.Capital is not a material income-producing factor to the partnership,and all partners are active in the business.On December 31,2012,general partner Ronda receives a distribution of $190,000 cash in liquidation of her partnership interest under § 736.Ronda's outside basis for the partnership interest immediately before the distribution is $140,000.How much is Ronda's gain or loss on the distribution and what is its character?

A) $50,000 ordinary income.
B) $40,000 ordinary income;$10,000 capital gain.
C) $40,000 capital gain;$10,000 ordinary income.
D) $50,000 capital gain.
E) None of the above.