28- Cynthia sells her 1/3 interest in the CAR Partnership to Brandon for $95,000 cash. On the date of sale, the partnership balance sheet and agreed-upon fair market values were as follows.

	Adjusted
	Basis	FMV
Cash	$40,000	$ 40,000
Receivables	0	60,000
Land	50,000	125,000
Total	$90,000	$225,000
Cynthia, capital	$30,000	$ 75,000
Arnold, capital	30,000	75,000
Ralph, capital	30,000	75,000
Total	$90,000	$225,000

If the partnership has a 754 election in effect, the total "step up" in basis of partnership assets allocated to Brandon is:

a.$75,000.

b.$45,000.

c.$0.

d.$65,000.

29- At the beginning of the year, Elsie's basis in the E&G Partnership interest is $90,000. She receives a proportionate current (nonliquidating) distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $40,000), and land (basis of $30,000, fair market value of $50,000). After the distribution, Elsie's bases in the accounts receivable, land, and partnership interest are:

a.$0; $50,000; and $30,000.

b.$0; $30,000; and $50,000.

c.$40,000; $30,000; and $10,000.

d.$40,000; $40,000; and $0.