Anthony's Basis in the WAM Partnership Interest Was $200,000 Just

Multiple Choice

Anthony's basis in the WAM Partnership interest was $200,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $90,000, fair market value of $100,000) , and inventory (basis of $30,000, fair market value of $70,000) . After the distribution, Anthony's recognized gain or loss and his basis in the land and inventory are:

A) $80,000 loss; $90,000 (land) ; $30,000 (inventory) .
B) $70,000 loss; $100,000 (land) ; $30,000 (inventory) .
C) $30,000 loss; $100,000 (land) ; $70,000 (inventory) .
D) $30,000 loss; $90,000 (land) ; $30,000 (inventory) .
E) $0 gain or loss; $170,000 (land) ; $30,000 (inventory) .