Ben is a partner in a Partnership. On January 1, the partnership distributes $15,000 cash and inventory with a fair value of $20,000 (inside basis of $10,000) to Ben in complete liquidation of his interest. The partnership has no liabilities at the date of thedistribution. Ben's basis in the partnership is $27,000. What is the amount and character of Ben's gain or loss on the distribution?

A. $0 gain or loss. B. $8,000 capital gain. C. $8,000 capital loss. D. $2,000 capital loss.