CDE Partnership Has the Following Assets on Its Balance Sheet

CDE Partnership has the following assets on its balance sheet. $\begin{array}{ll}&\text { Inside Basis }&FMV\\\text { Cash }&\$ 5,000 & \$7,000 \\\text { Accounts receivables }&20,000&20,000\\\text { Inventory }&70,000&85,000\\\S 1231 \text { assets }&90,000&50,000\\\text { Accumulated depreciation }&(40,000) &-\\\text { Land }&200,000&280,000\\&\$345,000&\$440,000\end{array}$

A) CDE has no § 751 hot assets.
B) CDE has $40,000 of unrealized receivables.
C) CDE has $20,000 of unrealized receivables.
D) CDE has substantially appreciated inventory items worth $85,000.
E) CDE has substantially appreciated inventory items worth $105,000.