M sold a 30% interest in the PM partnership to N for $90,000 when the PM partnership had the following assets: Cash basis $50,000 FMV $50,000 Inventory basis $105,000 FMV $110,000 Land basis $70,000 FMV $140,000 PM had no Section 754 election in effect at the time of sale. What is PN's basis in its assets with respect to N if PN elects to use the Section 754 basis adjustment?

A. $15,000 cash, $31,500 Inventory, and $21,000 Land.

B. $15,000 cash, $31,500 Inventory, and $42,000 Land.

C. $15,000 cash, $33,000 Inventory, and $21,000 Land.

D. $15,000 cash, $33,000 Inventory, and $42,000 Land.