In 2012, Corporation C Contributed Land (FMV $100,000 and Basis

In 2012, Corporation C contributed land (FMV $100,000 and basis $60,000) to Beta Partnership in exchange for a 25% interest in Beta.In 2012, Beta distributed the land to individual partner P, thereby terminating P's 30% interest in Beta.Immediately prior to distribution, the land was worth $110,000 and P's outside basis in his interest was $200,000.Which of the following is the correct set of tax consequences of the distribution?

A) There are no consequences to Corporation C.P takes a $200,000 basis in the land.
B) There are no consequences to Corporation C.P takes a $110,000 basis in the land.
C) There are no consequences to Corporation C.P takes a $100,000 basis in the land.
D) Corporation C must recognize a $50,000 gain and increase the basis in its partnership interest by $50,000.P takes a $200,000 basis in the land.
E) Corporation C must recognize a $40,000 gain and increase the basis in its partnership interest by $40,000.P takes a $200,000 basis in the land.