Marty Receives a Proportionate Nonliquidating Distribution When the Basis of Her

Multiple Choice

Marty receives a proportionate nonliquidating distribution when the basis of her partnership interest is $50,000.The distribution consists of $60,000 cash and noninventory property (adjusted basis to the partnership of $20,000;fair market value of $23,000) .How much gain or loss does Marty recognize,and what is her basis in the distributed property and in her partnership interest following the distribution?

A) $0 gain or loss;$20,000 basis in property;$0 basis in partnership interest.
B) $0 gain or loss;$23,000 basis in property;$2,000 basis in partnership interest.
C) $10,000 capital gain;$0 basis in property;$0 basis in partnership interest.
D) $10,000 capital gain;$20,000 basis in property;$0 basis in partnership interest.
E) $10,000 ordinary income;$0 basis in property;$10,000 basis in partnership interest.