ABC Partnership is making a distribution to partner A of $40,000 cash plus simultaneously investment land with a basis to ABC of $50,000 & a fair market value of $160,000. A's outside basis in his partnership interest immediately prior to the distribution is $70,000. As a result of this distribution, A's interest in the partnership is reduced from a 50% interest in capital & profits to a 20% interest.

Which of the following statements is FALSE regarding A's recognition of gain or loss on the above described distribution?

A. A must recognize a gain of $20,000 upon receipt of the distribution.

B. A can never recognize a loss of the amount of his basis in his partnership interest because loss is never recognized on a NON-liquidating distribution.

C. A's recognizes NO gain upon receipt of this distribution.

D. The fair market value of the land is completely irrelevant in determining A's recognized gain upon receipt of his distribution.