Randolph Is a 30% Partner in the RD Partnership

question 78

Multiple Choice

Randolph is a 30% partner in the RD Partnership.On January 1,RD distributes $26,000 cash to Randolph in complete liquidation of his interest.RD has only capital assets and no liabilities at the date of the distribution.Randolph's basis in RD is $37,000.What is the amount and character of Randolph's gain or loss on the distribution?

• A) $0 gain or loss.
• B) $11,000 capital gain.
• C) $11,000 ordinary income.
• D) $11,000 capital loss.

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