Randolph is a 30percent partner in the RD Partnership. On January 1, RD distributes $20,000 cash and inventory with a fair value of $52,000 (inside basis of $26,000) to Randolph in complete liquidation of his interest. RD has no liabilities at the date of the distribution. Randolph's basis in his RD Partnership interest is $48,750. What is the amount and character of Randolph's gain or loss on the distribution?

• $0 Gain or Loss
• $23,250 Capital Gain
• $23,250 Capital Loss
• $2,750 Capital loss