Brittany, Jennifer, and Daniel Are Equal Partners in the BJD

Multiple Choice

Brittany, Jennifer, and Daniel are equal partners in the BJD Partnership. The partnership balance sheet reads as follows on December 31: $\begin{array}{lrr}&\text { Adjusted } & \\&\text { Basis } & \text { FMV } \\\text { Cash } & \$ 75,000 & \$ 75,000 \\\text { Unrealized receivables } & -0- & 51,000 \\\text { Land } & \underline{45,000} & \underline{63,000} \\\text { Total } & \$ 120,000 & \$ 189,000\\\\\text { Brittany, capital } & \$ 40,000 & \$ 63,000 \\\text { Jennifer, capital } & 40,000 & 63,000 \\\text { Daniel, capital } & 40,000 & 63,000 \\\text { Total } & \$ 120,000 & \$ 189,000\end{array}$ Partner Daniel has an adjusted basis of $40,000 for his partnership interest. If he sells his entire partnership interest to new partner Amber for $73,000 cash, by how much can the partnership step up the basis of Amber's share of partnership assets under §§ 754 and 743b) ?

A) $6,000
B) $17,000
C) $23,000
D) $33,000
E) $40,000.