Cynthia Sells Her 1/3 Interest in the CAR Partnership to Brandon

Multiple Choice

Cynthia sells her 1/3 interest in the CAR Partnership to Brandon for $80,000 cash. Brandon also assumed Cynthia's 1/3 share of partnership liabilities. On the date of sale, the partnership balance sheet and agreed-upon fair market values were as follows: If the partnership has a § 754 election in effect, the total "step-up" in basis that Brandon can take in the partnership assets is:

A) $85,000.
B) $55,000.
C) $50,000.
D) $45,000.
E) $20,000.