Kathy is a 25 percent partner in the KDP Partnership and receives a parcel of land with a fair value of $157,000 (inside basis of $114,000) in complete liquidation of her partnership interest. Kathy's outside basis immediately before the distribution is $207,000. KDP currently has a 754 election in effect and has no hot assets or liabilities. What is KDP's special basis adjustment from the distribution?

Multiple Choice

a) $93,000 positive basis adjustment.

b) $0.

c) $43,000 positive basis adjustment.

d) $93,000 negative basis adjustment.