Derrick's Interest in the DEF Partnership Is Liquidated When His

Derrick's interest in the DEF Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and an FMV of $30,000. Derrick will recognize

A) $2,000 ordinary loss.
B) $2,000 capital loss.
C) $10,000 capital loss and $20,000 ordinary loss.
D) no gain or loss.