Question: Randolph is a 3 0 % partner in the RD Partnership. On January 1 , R D distributes $ 2 5 , 0 0 0

Randolph is a

30 %

partner in the RD Partnership. On January

1, R D

distributes $

25, 000

cash to Randolph in complete liquidation of his interest. RD has only capital assets and no liabilities at the date of the distribution. Randolpt's basis in RD is $

37, 000 .

What is the amount and charscter of Randolph's gain or loss on the distribution?

A $

0

gain or loss.

.

11, 000

captal gain.

.

11, 000

ordinary income.

.

11, 000

captal loss.

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