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Gain-loss and his basis in land and inventory

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William's basis in the WAM partnership interest was $100,000 just before he received a proportionate liquidating distribution consisting of investment land (basis of $30,000. fair market value $40,000), and inventory (basis $30,000, fair market value $70,000). After the distribution, William's recognized gain or loss and his basis in the land and inventory are:

a. $40,000 loss; $30,000 (land); $30,000 (inventory)

b. $10,000 gain; $40,000 (land); $70,000 (inventory)

c. $0 gain or loss; $30,000 (land); $70,000 (inventory)

d. $0 gain or loss; $70,000 (land); $30,000 (inventory)

e. None of the above

Reference no: EM13139662

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