Partner Jordan Received a Distribution of $90,000 Cash from the JKL

Multiple Choice

Partner Jordan received a distribution of $90,000 cash from the JKL Partnership in complete liquidation of his partnership interest.If Jordan's outside basis immediately before the distribution was $80,000,and if the partnership has made (and not revoked) a § 754 election in a prior year,which of the following statements is true? (Assume the partnership owns no "hot assets.")

A) The partnership will step-down the basis of its assets by $10,000.
B) The partnership will step-up the basis of its assets by $10,000.
C) Jordan will recognize a $10,000 capital gain on the distribution.
D) Both a.and c.are true.
E) Both b.and c.are true.