Recognition of capital or ordinal loss in business

Steve sells his 20% partnership interest having a $28,000 basis to Nancy for $40,000 cash. At the time of the sale, the partnership has no liabilities and its assets are as follows.

Basis FMV
Cash $20,000 $20,000
Unrealized receivables -0- 40,000
Inventory 10,000 40,000
Land (Sec. 1231) 110,000 100,000

The receivables and inventory are Sec. 751 assets. There is no agreement concerning the allocation of the sales price. Steve must recognize
A) no gain or loss.
B) $12,000 ordinary income.
C) $12,000 capital gain.
D) $14,000 ordinary income and $2,000 capital loss.