Joshua is a 40% partner in the XYZ Partnership when he sells his entire interest to Stanley for $60,000 cash. At the time of the sale, Joshua's basis is $36,000, which includes his $10,000 share of partnership liabilities. The partnership has no Sec. 751 assets. Joshua's gain or loss on the sale is

A)no gain or loss. B)Gain $24,000.

C)Gain $34,000. D)$36,000 gain and $2,000 ordinary loss.