Jessica Is a 25% Partner in the JRL Partnership

Jessica is a 25% partner in the JRL Partnership. On January 1, JRL distributes $40,000 cash to Jessica. JRL has no hot assets or liabilities at the date of the distribution. Jessica's basis in her JRL partnership interest is $28,000. What is the amount and character of Jessica's gain or loss from the distribution?

A) $0.
B) $12,000 ordinary income.
C) $12,000 capital loss.
D) $12,000 capital gain.