Janelle's basis in her partnership interest was $120,000, including her $150,000 share of partnership debt. At the end of the current year, the partnership pays off its debts and liquidates. Janelle receives a proportionate liquidating distribution consisting of $42,000 cash and inventory valued at $24,000 (adjusted basis to the partnership = $20,000). How much gain or loss does Janelle recognize, and what is her basis in the distributed property?

A). $0 gain or loss? $0 basis in the property.
B). $58,000 capital loss? $20,000 basis in the property.
C). $30,000 capital gain? $24,000 basis in the property.
D). $72,000 capital gain? $20,000 basis in the property.
E). $72,000 capital gain? $0 basis in the property.