Nancy contributed cash and real property to a partnership six years ago. At the time of contribution, the FMV of the property contributed to the partnership was $20,000. Nancy had paid $25,000 for the property. During 2022, the partnership decided that it no longer wanted this property. The property, which now had a FMV of $55,000, was distributed to another partner, Joshua. Which of the following is the correct amount of gain or loss on the property for 2022 and correctly states the party(ies) who will recognize the gain or loss?

a) $30,000 gain recognized, all by partnership.

b) No gain or loss will be recognized until Joshua sells the property.

c) $30,000 gain recognized by Nancy.

d) $35,000 gain recognized by partnership; $5,000 loss recognized by Nancy.