Aaron owns a 30% interest in a continuing partnership. The partnership distributes a $35,000 year-end cash payment to all the partners, In a proportionate nonliquidating distribution, the partnership also distributed property (basis of $15,000, fair market value of $20,000) to Aaron. Immediately before the distribution, Aaron's basis in the partnership interest was $50,000. As a result of the distribution, Aaron recognizes:

A- No gain or loss

B- Ordinary loss of $5,000

C- Capital loss of $5.000

D- Ordinary gain of $5.000.

E- Capital gain of $5,000