Catherine's Basis Was $50,000 in the CAR Partnership Interest Just

Multiple Choice

Catherine's basis was $50,000 in the CAR Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of $40,000,fair market value of $60,000) and inventory (basis of $40,000,fair market value of $40,000) .After the distribution,Catherine's bases in the land and inventory are,respectively:

A) $40,000 and $40,000.
B) $40,000 and $10,000.
C) $10,000 and $40,000.
D) $25,000 and $25,000.
E) None of the above.