The adjusted basis of Mr. E's partnership interest was $65,000. In a partial liquidation, E exchanged one-half of his interest for the following properties: Adjusted Basis Fair Market Value Cash $60,000 $60,000 Inventory 15,000 20,000 Land 15,000 5,000 $90,000 $85,000 The inventory was neither substantially appreciated, nor did the partnership have any unrealized receivables. As a result of the partial liquidation, Mr. E's proportionate share of partnership liabilities also declined by one-half, or $10,000. The partnership had no other liabilities. What is Mr. E's total recognized gain or loss on the disposition? Capital Gain Ordinary Income A. Capital Gain $0 Ordinary Income $0 B. Capital Gain $10,000 Ordinary Income $0 C. Capital Gain $5,000 Ordinary Income $0 D. Capital Gain $30,000 Ordinary Income $5,000