In liquidation of Partner As interest in a partnership, A receives a distribution of $10,000 in cash, inventory worth $15,000 with a basis to the partnership of $10,000, and accounts receivable worth $5,000 with a basis to the partnership of $0. Partner As basis in the partnership interest is $50,000 at the time of the distribution. Assuming Section 751(b) is not applicable, what are the tax consequences to A?

	A.	Partner A recognizes no gain or loss on the exchange. Partner A assumes a basis of $30,000 in the inventory and a basis of $10,000 in the receivables, the sum of which equals As basis in the partnership interest reduced by the $10,000 in cash received.
	B.	Partner A recognizes a $20,000 loss on the exchange. Partner A assumes a basis of $15,000 in the inventory and $5,000 in the accounts receivable, the sum of which equals As basis in the partnership interest reduced by the $10,000 cash received and the $20,000 overall loss sustained on the transaction.
	C.	Partner A recognizes a $30,000 loss on the exchange. Partner A assumes a basis of $10,000 in the inventory and $0 in the accounts receivable, the sum of which equals As basis in the partnership interest reduced by the $10,000 of cash received and the $30,000 overall loss sustained on the transaction.
	D.	Partner A recognizes an ordinary gain of $10,000 attributable to the inventory and receivables and a capital loss of $30,000. Partner A assumes a basis of $15,000 in the inventory and $5,000 in the accounts receivable, the sum of which equals As basis in the partnership interest increased by the $10,000 ordinary gain and reduced by both the cash received and the $30,000 capital loss.