The XYZ Partnership Owns the Following Assets on December 31

The XYZ Partnership owns the following assets on December 31: A partner has a 20% interest with a basis of $6,000 in XYZ before receiving a liquidating distribution
$10,000 cash. XYZ Partnership has no liabilities. His recognized gain is

A) $3,000 ordinary income.
B) $4,000 capital gain.
C) $3,000 ordinary income and $1,000 capital gain.
D) $3,000 capital gain and $1,000 ordinary income.