Howard Is a Partner in the Smithton Partnership with a Basis

Multiple Choice

Howard is a partner in the Smithton Partnership with a basis of $20,000. During the current year, the partnership is liquidated and the partnership distributes cash of $22,000 and property with a basis of $8,000 and a fair market value of $15,000 to each partner. What amount must Howard report as a gain from the liquidation?

A) $- 0 -
B) $2,000
C) $10,000
D) $15,000
E) $17,000