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 $95,000 cash. 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 "step­up" in basis of partnership assets that will be allocated to Brandon is:

A) $75,000.
B) $65,000.
C) $45,000.
D) $20,000.
E) $0.