Partnership Records Show R Is a 50 Percent Partner

Partnership records show: $\begin{array}{ll}&\text { Inside Basis }&FMV\\\text { Inventory }&\$12,000 & \$28,000 \\\text { Land }&48,000 & 70,000\\\text { Equipment }&32,000&42,000\\\text { Total assets }&\$92,000&\$140,000\end{array}$ R is a 50 percent partner.The equipment has $10,000 of § 1245 recapture potential.R and her partner each received a distribution from the partnership of a one-half interest in the land.If R's predistribution outside basis was $46,000, R's recognized gain is:

A) $0
B) $5,000 ordinary gain
C) $5,000 capital gain
D) $20,000 ordinary gain
E) $20,000 capital gain