Barry owns a 25% interest in a continuing partnership. the partnership distributes a $20,000 year-end cash bonus to all the partners. in a proportionate nonliquidating distribution, the partnership also distributed property (basis of $2,000; fair market value of $3,000) to barry. Immediately before the distribution, Barry's basis in the partnership interest was $30,000. As a result of the distribution, Barry recognizes:
a. No gain or loss
b. Ordinary loss of $7,000
c. Capital loss of $7,000
d. Ordinary loss of $8,000
e. Capital loss of $8,000