Roberto Is a Partner in a Continuing Partnership

Multiple Choice

Roberto is a partner in a continuing partnership.At the end of the current year, the partnership distributed to Roberto in a proportionate, nonliquidating distribution cash of $50,000, inventory with a basis to the partnership of $45,000 and a fair market value of $60,000, and a parcel of land with a basis to the partnership of $120,000 and a fair market value of $80,000.Roberto's basis in the partnership interest was $240,000 before the distribution.What basis does Roberto take in the inventory and land, and what is his basis in the partnership interest following the distribution?

A) $45,000 basis in inventory; $80,000 basis in land; $65,000 basis in partnership.
B) $45,000 basis in inventory; $120,000 basis in land; $25,000 basis in partnership.
C) $60,000 basis in inventory; $80,000 basis in land; $50,000 basis in partnership.
D) $60,000 basis in inventory; $120,000 basis in land; $10,000 basis in partnership.
E) $60,000 basis in inventory; $120,000 basis in land; $0 basis in partnership.