Janella's Basis in Her Partnership Interest Was $120,000, Including Her

Janella's basis in her partnership interest was $120,000, including her $150,000 share of partnership debt. At the end of the current year, the partnership pays off its debts and liquidates. Janella receives a proportionate liquidating distribution consisting of $42,000 cash and inventory valued at $24,000 (adjusted basis to the partnership = $20,000) . How much gain or loss does Janella recognize, and what is her basis in the distributed property?

A) $0 gain or loss; $78,000 basis in property.
B) $58,000 capital loss; $20,000 basis in property.
C) $30,000 capital gain; $24,000 basis in property.
D) $72,000 capital gain; $20,000 basis in property.
E) $72,000 capital gain; $0 basis in property.