Robin's Interest in the Equal Prairie Partnership Is Sold to Tyler

Robin's interest in the equal Prairie Partnership is sold to Tyler for $105,000 cash.On the date of the sale, the partnership tax balance sheet and the agreed fair market values were as follows. $\begin{array}{lcc}&\text { Adjusted }\\&\text { Basis } & \text { FMV } \\\text { Cash } & \$ 180,000 & \$ 180,000 \\\text { Inventory } & 160,000 & 60,000 \\\text { Other assets } & 100,000 & 120,000\\&\$440,000&\$360,000\\\\\text { Robin, capital } & \$ 110,000 & \$ 90,000 \\\text { Croix, capital } & 110,000 & 90,000 \\\text { Nassau, capital } & 110,000 & 90,000 \\\text { Bermuda, capital } & 110,000 & 90,000\\&\$440,000&\$360,000\end{array}$ Assume Robin's basis for his partnership interest equals his capital account.As a result of the sale, Robin recognizes

A) No gain or loss.
B) $5,000 capital loss.
C) $25,000 ordinary loss.
D) $5,000 capital gain.
E) $25,000 ordinary loss and $20,000 capital gain.