Desi’s adjusted basis of her partnership interest was $40,000 immediately before she received a distribution in full liquidation of her Makris partnership interest. The distribution consisted of $25,000 in cash and land with a fair market value of $30,000. Niakris’s basis in the land was $28O00 immediately prior to the distribution. During the year. Desi sold the land for $30,000. How will Desi report the liquidating distribution and the sale on her income tax return?

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Liquidating Distribution Sale of the Land $35,000 capital gain $22,000 capital gain $20,000 capital gain $10,000 capital gain a. No gain or loss b. No gain or loss C. $15,000 gain d. $25,000 gain