Geneva Receives a Proportionate Nonliquidating Distribution from the EFG Partnership

Multiple Choice

Geneva receives a proportionate nonliquidating distribution from the EFG Partnership.The distribution consists of $10,000 cash and property (adjusted basis to the partnership of $34,000 and fair market value of $42,000) .Immediately before the distribution,Geneva's adjusted basis in the partnership interest was $60,000.Her basis in the noncash property received is:

A) $10,000.
B) $34,000.
C) $42,000.
D) $50,000.
E) $60,000.