Jake is a 30 percent partner in the Tiger and Jake Partnership (T&J). On January 1, T & J distributes $15,000 cash and inventory with a fair value of $20,000 (inside basis of $10,000) to Jake in complete liquidation of his interest. T & J has no liabilities at the date of the distribution. Jake's basis in his T & J Partnership interest is $27,000. What is the amount and character of Jake's gain or loss on the distribution?

Group of answer choices

$2,000 capital loss.

$0 gain or loss.

$8,000 capital loss.

$8,000 capital gain.