Partner Shin received a distribution of $60,000 cash from the Shamrock

Partnership in complete liquidation of his partnership interest. If Shin's outside

basis immediately before the distribution was $90,000, and if the partnership has a

754 election in effect, which of the following statements is true? (Assume the

partnership owns no "hot assets.")

a.Shin will recognize a $30,000 capital loss on the distribution. b. The partnership will step-up the basis of its assets by $30,000. c. The partnership is not allowed a step-up adjustment in this situation. d. The partnership will step-up the basis of its capital and 1231 assets by $30,000. e. None of the above.