Kristen and Harrison are equal partners in the KH Partnership. The partners formed the partnership five years ago by contributing cash. Prior to any distributions Harrison has a basis in his partnership interest of $40,500. On December 31, KH makes a proportionate operating distribution of $45,500 cash to Harrison. What is the amount and character of Harrison's recognized gain or loss and what is his remaining basis in KH? Multiple Choice $0 gain, $0 basis. $5,000 capital gain, $0 basis. O $5,000 capital loss, $0 basis. O $5,000 capital gain, $40,500 basis. O