Question - Abby and Bobby are equal partners in a Partnership. Bobby has an outside basis of $44,000. On December 31, the partnership makes a proportionate non-liquidating distribution of $50,000 cash to Bobby. What is the amount and character of Bobby's recognized gain or loss and what is his outside basis in the partnership after the distribution.
A. $0 gain, $0 basis
B. $6,000 capital gain, $0 basis
C. $6,000 capital loss, $0 basis
D. $6,000 capital gain, $44,000 basis