Steve sells his 20% partnership interest having a $28,000 basis to Nancy for $40,000 cash. At the time of the sale, the partnership has no liabilities and its assets are as follows. Cash Basis $20,000 FMV $20,000 Unrealized receivables Basis $0 FMV $40,000 Inventory Basis $10,000 FMV $40,000 Land (Sec. 1231) Basis $110,000 FMV $100,000 The receivables and inventory are Sec. 751 assets. There is no agreement concerning the allocation of the sales price. Steve must recognize a. no gain or loss b. $12,000 ordinary income c.$12,000 capital gain d. $14,000 ordinary income and $2,000 capital loss