I only need help with C (1).

The drop down options are:

a loss (incorrect)

a gain

no gain or loss

Problem 11-32 (LO. 4, 14) Ebony has a basis in her partnership interest of $85,000. In a proportionate liquidating distribution of the partnership, Ebony receives $5,000 cash and a car (a 1231 asset to the partnership) having a basis of $20,000 to the partnership and a fair market value of $30,000. Disregard any potential depreciation recapture on the car. If there is no gain or loss or if an amount is zero, enter " 0 ". a. How much gain or loss, if any, may Ebony recognize on the distribution? Ebony recognizes b. What basis will Ebony take in the car? c. Suppose Ebony's 18-year-old son uses the car for his personal use for one year before Ebony sells it for $28,000. (1) Does Ebony recognize any gain or loss? Ebony recognizes X. (2) Complete the paragraph below that outlines possible tax planning procedures that should be considered. When a partner is to receive a liquidating distribution and the full basis of the interest will not be recovered, the partner's capital loss can be ensured by providing that the only asset(s) received by the partner Another alternative would be to place the car in use in another trade or business. The loss would convert from into