Question - ST Partnership had the following assets:

Inventory: Value $30,000 Basis $12,000

Land: Value $90,000 Basis $48,000

Inventory is a Section 751 asset and each partner has an outside basis of $30,000. S, a 50% partner, and T, her copartner, received a partial distribution from the partnership. S received land worth $30,000 with a basis of $16,000; T received inventory worth $30,000 with a basis of $12,000. What is T's recognized gain, ignoring partnership income?

$7,000 capital gain

$7,000 ordinary gain

$9,000 ordinary gain

$14,000 ordinary gain