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AZ LLC is liquidating, and A receives a final distribution of inventory with a fair market value of $20,000 and an adjusted basis of $8,000.

AZ LLC is liquidating, and A receives a final distribution of inventory with a fair market value of $20,000 and an adjusted basis of $8,000. A's basis in the partnership is $13,000. What are the tax consequences to A? Assume Sec. 751(b) does not apply.

a. $20,000

b. $84,000

c. $114,000

d. $100,000

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