Stone and Frazier decided to terminate the Woodwest Partnership as of December 31. On that date, Woodwest’s balance sheet was as follows:
Cash $2,000
Land (adjusted basis) 2,000
Capital—Stone 3,000
Capital—Frazier 1,000
The fair market value of the land was $3,000. Frazier’s outside basis in the partnership was $1,200. Upon liquidation, Frazier received $1,500 in cash. What gain should Frazier recognize?