Carl Receives a Proportionate Nonliquidating Distribution When the Basis of His

Multiple Choice

Carl receives a proportionate nonliquidating distribution when the basis of his partnership interest is $60,000.The distribution consists of $20,000 in cash and property with an adjusted basis to the partnership of $35,000 and a fair market value of $45,000.Carl's basis in the noncash property and his remaining basis in the partnership interest are:

A) $60,000; $0.
B) $35,000; $0.
C) $35,000; $5,000.
D) $40,000; $0.
E) None of the above.