Catherine's Basis Was $50,000 in the CAR Partnership Just Before

Multiple Choice

Catherine's basis was $50,000 in the CAR Partnership just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment with a basis to CAR of $40,000 (value of $60,000) , and inventory with a basis of $40,000 (value of $40,000) . After the distribution, Catherine's bases in the land and inventory are:

A) $40,000 (land) ; $40,000 (inventory) .
B) $40,000 (land) ; $10,000 (inventory) .
C) $10,000 (land) ; $40,000 (inventory) .
D) $25,000 (land) ; $25,000 (inventory) .
E) $60,000 (land) ; $40,000 (inventory) .