Partner A has a basis in its interest in the ABC Partnership of $200,000 as at 1 January 202. On said date, the Society distributed $240,000 to him. The company is taxed according to its default tax treatment. Determine the tax treatment of the $240,000 distributed to Partner A. Select one: a. $240,000 is taxed as ordinary income. b. They decrease the basis by $240,000. c. $40,000 is classified as a capital gain. d. $240,000 are exempt from taxation