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On January 4, Barney Bubbles contributed $20,000 cash to Dracon Partnership for a one-fourth interest. His adjusted basis in the partnership at the end of

On January 4, Barney Bubbles contributed $20,000 cash to Dracon Partnership for a one-fourth interest. His adjusted basis in the partnership at the end of the year was $35,000, which included his $15,000 share of partnership liabilities. The partnership has no unrealized receivables or substantially appreciated inventory items. On December 31, Barney sold his interest in Dracon for $30,000 cash. Barney had been paid his share of Dracon's income for the year. What is the amount of Barney's capital gain or loss?

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