Terri's Basis in Her Partnership Interest Was $120,000,including Her $40,000

Multiple Choice

Terri's basis in her partnership interest was $120,000,including her $40,000 share of partnership liabilities.The partnership decides to liquidate,and after repaying all liabilities,distributes all remaining assets proportionately to the partners.Terri receives $30,000 cash and accounts receivable with a $20,000 basis and a $22,000 fair market value to the partnership.What gain or loss does Terri recognize,and what is her basis in the accounts receivable?

A) $0 gain or loss;$20,000 basis.
B) $0 gain or loss;$90,000 basis.
C) $70,000 loss;$20,000 basis.
D) $30,000 loss;$20,000 basis.
E) $30,000 loss;$22,000 basis