Problem: Tip Donel received $35,000 cash in a liquidating distribution when he withdrew as a one-third partner in the TLC Partnership on January 1 of the current year. On that date, TLC's assets were cash of $21,000, accounts receivable of $52,500 ($0 basis), and land valued at $47,250 ($42,000 basis). Tip's basis in his interest in TLC was $21,000. TLC's liabilities were limited to accounts payable of $15,750. What are the amount and the character of gain/loss to be reported by Tip? A. $17,500 ordinary income, $1,750 capital gain. B. No gain or loss. C. $14,000 capital gain. D. $19,250 capital gain.