Peter Wallace had an adjusted basis in his partnership interest of $35,000 when the partnership made a distribution to him, not in complete termination of his interest, of $30,000 cash and a parcel of real estate which the partnership held as an investment. THe real estate had a basis to the partnership of $10,000 and a fair market value of $15,000. AS a result of the distribution,

a) Wallace has ordinary income of $30,000, a capital gain of $15,000, and the real estate has a basis to him of $15,000

b) Wallace has ordinary income of $5000, no capital gain, and the real estate has a basis to him of $10,000

c) Wallace has no ordinary income, no capital gain, and the real estate has a basis to him of $5000

d) Wallace has no ordinary income, a capital gain of $5000, and the real estate has a basis of $10,000