Randolph Is a 30% Partner in the RD Partnership

Randolph is a 30% partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair value of $20,000 (inside basis of $10,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD partnership interest is $27,000. What is the amount and character of Randolph's gain or loss on the distribution?

A) $0 gain or loss.
B) $8,000 capital gain.
C) $8,000 capital loss.
D) $2,000 capital loss.