Capital Loss and Gain

David contributes investment land with a basis of $24,000 and a FMV of $40,000 to a partnership for a 10% interest in partnership capital, profits and losses. The land is subject to a $30,000 recourse liability, which is assumed by the partnership. The partnership has other recourse liabilities of $18,000. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. David must recognize
A) $3,000 capital gain.
B) $3,000 capital loss.
C) $1,200 capital gain.
D) $1,200 capital loss.