In year 1, Bubba contributed investment land with basis of $14,000 and FMV of $20,000 in exchange for a 20% capital and profits interest in the ABC partnership. Bubba recognized no gain on the contribution. In Year 3, when Bubba had a basis in his partnership interest of $35,000, he rece3ived a current distribution of $35,000, he received a current distribution of machinery with a basis of $34,000 and FMV of $37,000. On the distribution, what does Bubba recognize?
a. No gain or loss
b. $1,000 capital gain
c. $2,000 capital gain
d. $6,000 capital gain
e. None of the above answers