Atiqa Receives a Nonliquidating Distribution of Land from Her Partnership $$\begin{array} { | l | l | } \hline \text { Atiqa } & \text { Partnership } \\\hline \$ 28,000 & \$ 8,000\\\hline\end{array}$$

Multiple Choice

Atiqa receives a nonliquidating distribution of land from her partnership.The partnership purchased the land five years ago for $20,000.At the time of the distribution,it is worth $28,000.Prior to the distribution,Atiqa's basis in her partnership interest is $37,000.Due to the distribution,Atiqa and the partnership will recognize income of

A) $$\begin{array} { | l | l | } \hline \text { Atiqa } & \text { Partnership } \\\hline \$ 28,000 & \$ 8,000\\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Atiqa } & \text { Partnership } \\\hline \$ 8,000 & \$ 0 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Atiqa } & \text { Partnership } \\\hline \$ 0 & \$ 0 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Atiqa } & \text { Partnership } \\\hline \$ 0 & \$ 8,000 \\\hline\end{array}$$