Cody contributed nondepreciable property with a basis of $45,000 and a fair market value of $56,000 to the Laurel Partnership in 2010 in exchange for a 40% interest in the partnership. In 2013, he receives a nonliquidating distribution from the partnership of other property with a basis to the partnership of $9,000 and a fair market value of $50,000. The basis in his partnership interest at the time of the distribution was $30,000. How much gain or loss does Cody recognize on the distribution? (Assume no other distributions have been made to Cody, the property he originally contributed is still owned by the partnership, and this is not a disguised sale transaction.)

a. $0 gain or loss.

b. $11,000 gain.

c. $20,000 gain.

d. $41,000 gain.

e. None of the above.