On January 1, Kent sold his 50% limited partner interest in a limited partnership for $30,000 cash. On that date, the adjusted basis of Kents partnership interest was $40,000. On January 1, the partnership had recourse debt of $40,000. What is Kents gain or loss on the sale of his partnership interest?

Group of answer choices

a)Ordinary loss of $30,000.

b)Ordinary gain of $15,000.

c)Capital loss of $10,000.

d)Capital loss of $30,000.