XYZ, an equal 3-person partnership, has cash of $9,000 and securities of $15,000 (FMV) with an adjusted basis of $33,000 to the partnership. Assume that Z sells his interest to V for $8,000. If the new partnership subsequently sells the securities when the FMV is $9,000, what must partner V include in taxable income if a Section 754 election is in effect? A) $0, B) $2000 loss, C) $5000 loss, D) $8000 loss. Please explain why.