XYZ an equal three-person partnership, has cash of $9,000 and securities of $36,000 (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 whtn the FMV is $27,000, what must partner V include in taxable income if a Section 754 election is in effect? A. $0 B. $2,000 loss C. $3,000 loss D. $9,000 loss