A calendar year$-$end partnership consisting of Partners A$,$ B$,$ and C made its only nonliquidating distribution for the year on December $31.$

Each partner will receive $$35,000$ in cash. Partner A has an outside basis of $$45,000.$ Partner B has an outside basis of $$35,000,$ and Partner C has an outside basis of $$25,000$

Which partner will report a capital gain?

Partner A

Partner B

Partner C

None of the partners

Partners A and B formed a partnership five years ago by contributing $$50,000$ each. Prior to any distributions, Partner A had a basis of $$44,000.$ On December $31,$ the partnership made a nonliquidating distribution of $$50,000$ cash.

What is the amount of recognized gain or loss and the resulting basis in the partnership from this distribution?

$$0$ gain, $50$ basis

$$6,000$ capital gain, $$0$ basis

$$6,000$ capital loss, $$0$ basis

$$6,000$ capital gain, $$44,000$ basis