[1] On January 1 of the current year, Caryns basis in the Group V Partnership was $13,000. During the current year, she received a current distribution of $17,000 cash and land with a basis of $3,000 and a FMV of $5,000. Assume Sec. 751 does not apply. What are the amount and the character of the gain or loss Caryn should recognize from this transaction?

A. $0 gain or loss.

B. $7,000 capital gain.

C. $9,000 capital gain.

D. $4,000 capital gain.