Lucas is a 25% partner in the LCS Partnership. On January 1, LCS distributes $40,000 cash and land with a $32,000 fair value (inside basis $16,000). LCS has no liabilities at the date of the distribution. Lucas basis in LCS is $32,000. What is the amount and character of Lucas gain or loss on the liquidating distribution?

Multiple Choice $0. $8,000 capital gain. $24,000 capital gain. $40,000 capital gain.