Joseph has an outside basis of $80,000 in the Tungsten Partnership as of December 31 of the current year. On that date the partnership liquidates and distributes to Joseph a proportionate distribution of $35,000 cash and inventory with an inside basis to the partnership of $25,000 and a fair market value of $50,000. In addition, Joseph receives a safe which has an inside basis and fair market value of $4,500 and $6,000, respectively. None of the distribution is for partnership goodwill. How much gain or loss will Joseph recognize on the distribution, and what basis will he take in the safe?

		$0 loss; $20,000 basis
		$14,000 loss; $6,000 basis
		$5,000 loss; $-0- basis
		$15,500 loss; $4,500 basis
		None of the above