Howard is a partner in the Smithton Partnership with a basis of $20,000. During the current year, the partnership is liquidated, and the partnership distributes cash of $22,000 and property with a basis of $8,000 and a fair market value of $15,000 to each partner. What amount must Howard report as a gain from the liquidation?
A. $-0-
B. $2,000
C. $10,000
D. $15,000
E. $17,000
Answer: B
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