Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $26,000 cash to Randolph in complete liquidation of his interest. RD has only capital assets and no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $37,000.

What is the amount and character of Randolph's gain or loss on the distribution? Multiple Choice $0 gain or loss. $11,000 capital gain. $11,000 ordinary income. $11,000 capital loss.