Megan's Basis Was $100,000 in the MAR Partnership Interest Just

Multiple Choice

Megan's basis was $100,000 in the MAR Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of $80,000, fair market value of $100,000) and inventory (basis of $60,000, fair market value of $60,000) . After the distribution, Megan's bases in the land and inventory are, respectively:

A) $80,000 and $20,000.
B) $100,000 and $0.
C) $40,000 and $60,000.
D) $50,000 and $50,000.
E) None of the above.