The UNA General Partnership, a cash basis taxpayer, has been in existence since 2013. For its tax year ended December 31, 2016, UNA had the following items of income and loss:

Sales income $ 100,000

Interest income 9,000

Municipal interest income 6,000

Section 1231 gain 9,000

Cost of goods sold 70,000

Advertising expense 4,000

Supplies expense 4,000

Depreciation expense 4,000

Taxes 9,000

Charitable contributions 2,100

Life insurance premium on partners' lives (proceeds to partnership) 3,000

UNA's balance sheet as of January 1, 2016 was as follows:

Basis Fair Market Value

Cash $50,000 $50,000

Accounts Receivable -0- 30,000

Land 40,000 40,000

$90,000 $120,000

======== ========

Recourse debt $30,000 $30,000

Capital, Sophie 20,000 30,000

Capital, Partner 2 20,000 30,000

Capital, Partner 3 20,000 30,000

$90,000 $120,000

======== ========

Sophie is a one-third partner in UNA. She received a guaranteed payment of $12,000 for 2016. Sophie received a $15,000 cash distribution from UNA on December 31, 2016. Compute Sophie's basis as of December 31, 2016 and indicate the amount of gain or loss on the distribution, if any.

Basis, capital account

$0

Recourse debt

Interest income

Municipal interest

Section 1231 gain

Distributions

Ordinary loss

Charitable contributions

Insurance premium

Guaranteed payment

Ending basis

Gain/loss