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Mario is a $40\%$ partner in the MPC Partnership. On January $1,$ MPC distributes $$32,000$ cash and land with a $$32,000$ fair value $($inside basis $$16,000).$ MPC has no liabilities at the date of the distribution. Mario's basis in MPC is $$40,000.$ What is the amount and character of Mario's gain or loss from the liquidating distribution?

Multiple Choice

$$0$

$$8,000$ capital gain

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