Kanye is a 30% partner in the KC Partnership. On January 1, KC distributes $26,000 cash to Kanye in complete liquidation of his interest. KC has only capital assets and no liabilities at the date of the distribution. Kanye's basis in KC is $37,000. What is the amount and character of Kanye's gain or loss on the distribution?

		$0 gain or loss.
		$11,000 capital gain.
		$11,000 ordinary income.
		$11,000 capital loss.