7.9 Partnership ABC holds two parcels of land for investment. It has the following balance sheet (expanded to show the values of its investment assets): Partners A, B and C formed the partnership with cash contributions of $310,000 each. The partnership used this cash to acquire the two parcels, which it has held ever since, realizing no income, gain or loss. After the parcels had appreciated to the values shown in the balance sheet, C sold her interest to D for $400,000. The partnership made a section 754 election in connection with this sale. Time has passed, and the partnership now proposes to distribute Parcel 1 to D in redemption of one-half of her interest. Following this distribution, what will be D's basis in Parcel 1? a) $110,000 b) $140,000 c) $155,000 d) $200,000