Eric Receives a Proportionate Nonliquidating Distribution When the Basis of His

Multiple Choice

Eric receives a proportionate nonliquidating distribution when the basis of his partnership interest is $80,000. The distribution consists of $20,000 in cash and property with an adjusted basis to the partnership of $45,000 and a fair market value of $40,000. Eric's basis in the noncash property and his remaining basis in the partnership interest are:

A) $45,000; $35,000.
B) $45,000; $15,000.
C) $40,000; $40,000.
D) $40,000; $20,000.
E) None of the above.