Misha receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Misha recognize, and what is his basis in the distributed inventory and in the partnership interest following the distribution?

a.$20,000 capital gain; $0 basis in inventory; $0 basis in partnership interest.

b.$20,000 ordinary income; $0 basis in inventory; $20,000 basis in partnership interest.

c.$0 gain or loss; $20,000 basis in inventory; $50,000 basis in partnership interest.

d.$0 gain or loss; $10,000 basis in inventory; $0 basis in partnership interest.