Summa Partnership Distributed $10,000 Cash and a Capital Asset (FMV

Summa Partnership distributed $10,000 cash and a capital asset (FMV $5,000 and basis $3,400) to partner D in complete liquidation of her interest in Summa.Immediately prior to the distribution, D's outside basis in her interest was $7,500.If Summa has a § 754 election in effect, which of the following statements is accurate?

A) Summa may increase the basis in its capital and § 1231 assets by $2,500.
B) Summa may increase the basis in its capital and § 1231 assets by $5,000.
C) Summa may increase the basis in its capital and § 1231 assets by $3,400.
D) Summa may increase the basis in its capital and § 1231 assets by $5,900.
E) The property distribution has no effect on the basis of Summa's assets.