The PW partnership's balance sheet includes the following assets immediately before it liquidates:

	Basis		FMV
Cash	$10,000		$10,000
Unrealized receivables	-0-		10,000
Total	$10,000		$20,000

In complete liquidation, PW distributes the cash to Pamela and the unrealized receivables to Wade (equal partners). Pamela and Wade each have an outside basis in PW equal to $5,000. PW has no liabilities at the time of the liquidation. What is the amount and character of Wade's recognized gain or loss?

Multiple Choice

• $0.

• $5,000 capital gain.

• $5,000 ordinary income.

• $2,500 capital gain and $2,500 ordinary income.