Larimer received $30,000 cash and a capital asset with a basis and fair market value of $55,000 in a proportionate liquidating distribution. His basis in his partnership interest was $100,000 prior to the distribution. How much gain or loss does Larimer recognize, and what is his basis in the capital asset received in the distribution?
a. $0 gain or loss; $55,000 basis.
b. $15,000 loss; $55,000 basis.
c. $15,000 gain; $55,000 basis.
d. $15,000 gain; $70,000 basis.
e. $0 gain or loss; $70,000 basis.