Compendium Corp. distributed cash and personal property to its sole shareholder. Considering the following facts, what is the amount of gain that would be recognized by Compendium as the result of making this distribution to its shareholder?

Item ......................................................... Amount
Cash ......................................................... $25,000
Personal ............................................... property
Fair market value ................................. 10,000
Adjusted basis ........................................ 4,000
Liability on property assumed by
shareholder ........................................... 12,000

a. $4,000

b. $6,000

c. $8,000

d. $29,000