Kathy Is a 25percent Partner in the KDP Partnership and Receives

Kathy is a 25percent partner in the KDP Partnership and receives a parcel of land with a fair value of $156,000 (inside basis of $112,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $206,000. KDP currently has a §754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution?

A) $0.
B) $44,000 positive basis adjustment.
C) $94,000 positive basis adjustment.
D) $94,000 negative basis adjustment.