The PW Partnership's Balance Sheet Includes the Following Assets Immediately

The PW Partnership's balance sheet includes the following assets immediately before it liquidates: $\begin{array}{c}\begin{array}{lll}\\\text { Cash } \\\text { Urrealized receivables } \\\text { Total }\end{array}\begin{array}{lll}\text { Basis}\\ \$ 10,000\\\underline{-0-}\\\underline{\$ 10,000}\end{array}\begin{array}{lll}\text {FMV}\\ \$ 10,000\\\underline{10,000}\\\underline{\$ 20,000}\end{array}\end{array}$
In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners) .Pamela and Wade each have an outside basis in PW equal to $5,000.PW has no liabilities at the time of the liquidation.What is the amount and character of Pamela's recognized gain or loss?

A) $0.
B) $5,000 capital gain.
C) $5,000 ordinary income.
D) $2,500 capital gain and $2,500 ordinary income.