William's Basis in the WAM Partnership Interest Was $100,000 Just

Multiple Choice

William's basis in the WAM Partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000,fair market value $40,000) ,and inventory (basis of $30,000,fair market value $70,000) .After the distribution,William's recognized gain or loss and his basis in the land and inventory are:

A) $40,000 loss;$30,000 (land) ;$30,000 (inventory) .
B) $10,000 gain;$40,000 (land) ;$70,000 (inventory) .
C) $0 gain or loss;$30,000 (land) ;$70,000 (inventory) .
D) $0 gain or loss;$70,000 (land) ;$30,000 (inventory) .
E) None of the above.