At the end of last year, cynthia, a 20% partner in the five-person cyg partnership, has an outside basis of $23,000 including her $8,500 share of cyg debt. on january 1 of the current year, cynthia sells her partnership interest to roger for a cash payment of $16,000 and the assumption of her share of cyg's debt. cyg has no hot assets. what is the amount and character of cynthia's recognized gain or loss on the sale?
a. $1,500 capital gain.
b. $7,500 ordinary income
c. $7,000 ordinary loss
d. $7,000 capital loss.