Dan Receives a Proportionate Nonliquidating Distribution When the Basis of His

Multiple Choice

Dan receives a proportionate nonliquidating distribution when the basis of his partnership interest is $30,000.The distribution consists of $10,000 in cash and property with an adjusted basis to the partnership of $24,000 and a fair market value of $26,500.Dan's basis in the noncash property is:

A) $26,500.
B) $24,000.
C) $20,000.
D) $10,000.
E) None of the above.