Calvin sells his 40 percent interest in a partnership with a $70,000 basis for $75,000. The partnership has two assets, inventory valued at $100,000 with a $50,000 basis and investments valued at $87,500 that have a basis of $125,000. How will Calvin report the sale of the partnership interest? Select one:

a. $20,000 ordinary income

b. $20,000 ordinary income; $15,000 capital loss

c. $5,000 capital gain

d. $5,000 capital loss