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As part of a liquidating distribution, a partner receives $8,000 cash and land with a fair market value of $12,000 and a basis of $7,000.

As part of a liquidating distribution, a partner receives $8,000 cash and land with a fair market value of $12,000 and a basis of $7,000. The partner's basis in the partnership prior to the distribution was $10,000. What is the partner's basis in the land immediately after the distribution?

A) $2,000

B) $7,000

C) $8,000

D) $12,000

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