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 $50,000) .After the distribution, Megan's bases in the land and inventory are, respectively:

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