Baker is a partner in BDT with a basis in his partnership interest of $$60,000.$ BDT made a liquidating distribution of land with an adjusted basis of $$75,000$ and a fair market value of $$40,000$ to Baker. What amount of gain or loss should Baker report?

Baker is a partner in BDT with a basis in his partnership interest of $$60,000.$ BDT made a liquidating distribution of land with an adjusted basis of $$75,000$ and a fair market value of $$40,000$ to Baker. What amount of gain or loss should Baker report?

$$20,000$ loss

$$15,000$ gain

$$35,000$ loss

$$0$