C is an equal partner in the ABC Partnership. The partnership has made no election under IRC Section 754. C sells her interest to E for its fair market value of $99,000 when her basis was $88,000. At year-end, the assets of the partnership are as follows:

Basis Market

Cash $ 22,500 $ 22,500

Accounts receivable 45,000 45,000

Inventory 90,000 94,500

Land 90,000 180,000

Total $ 247,500 $ 342,000

Assuming that C's outside basis equaled the partnership's inside basis at the time of the sale, what is E's basis in the inventory at year end?

A. $0

B. $30,000

C. $31,500

D. $90,000