Jenny Has a $54,000 Basis in Her 50% Partnership Interest

Jenny has a $54,000 basis in her 50% partnership interest in the JM Partnership before receiving any distributions. This year JM makes a proportionate operating distribution to Jenny of a parcel of land with an $80,000 fair value and a $64,000 basis to JM. The land is encumbered with a $30,000 mortgage (JM's only liability) . What is Jenny's basis in the land and her remaining basis in JM after the distribution?

A) $80,000 land basis, $0 JM basis.
B) $64,000 land basis, $0 JM basis.
C) $64,000 land basis, $5,000 JM basis.
D) $80,000 land basis, $5,000 JM basis.