A is the general partner of Partnership ABCD and B, C and D are limited partners. One of the assets of the partnership is a building with a fair market value of $150,000 and an adjusted basis of $110,000, encumbered by a nonrecourse liability of $90,000, which is the partnership's only liability. The partnership has no Section 751 property. Partner C, who has a 25% interest, receives a liquidating distribution consisting of $20,000 in cash and this building, subject to the foregoing liability. Immediately before this distribution (after taking into account C's share of the partnership's income or loss for the year of the distribution), C's basis in her partnership interest is $16,000. What is the gain or loss, if any, Crealizes on this distribution, and what is her basis in the distributed property?

a) Gain $0, Tax Basic $62,500

b) Gain $0, Tax Basic $85,000

c) Gain $5,000, Tax Basic $0

d) Gain $27,500, Tax Basic $0