Natalie, a partner in a real estate partnership, receives a nonliquidating distribution consisting of $25,000 cash and property (a Section 1231 asset) valued at $60,000 in July. The partnerships tax basis in the property is $18,000 and Natalies tax basis in her partnership interest is $21,000. What is Natalies recognized gain on the distribution and her tax basis in the property received

a.Zero gain; zero basis in the property.

b. $4,000 gain; zero basis in the property

c. $22,000 gain; $18,000 basis in the property

d. Zero gain; $18,000 basis in the property