Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan's bases in the land and inventory are, respectively:
A)$100,000 (land) and $20,000 (inventory).
B)$120,000 (land) and $0 (inventory).
C)$50,000 (land) and $70,000 (inventory).
D)$40,000 (land) and $80,000 (inventory).
E)None of the above.

Question

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The Answer of Megan's basis was $120,000 in the MYP Partnership interest just before she received a proportionate nonliquidating distribution consisting of land held for investment (basis of $100,000, fair market value of $130,000) and inventory (basis of $80,000, fair market value of $70,000). After the distribution, Megan's bases in the land and inventory are, respectively:
A)$100,000 (land) and $20,000 (inventory).
B)$120,000 (land) and $0 (inventory).
C)$50,000 (land) and $70,000 (inventory).
D)$40,000 (land) and $80,000 (inventory).
E)None of the above.

Megan's Basis Was $120,000 in the MYP Partnership Interest Just