H's $30,000 partnership interest is terminated through a capital asset distribution having a FMV of $50,000 (partnership basis of $40,000) and cash of $10,000. Assuming that an optional basis adjustment election if in effect, which of the following statements is true? A. H's basis in the capital asset is $20,000 B. H does not recognize gain or loss and takes a $30,000 basis in the capital asset received C. H recognizes a gain of $30,000 or D. The partnership increases the basis of its remaining assets by $30,000?