Tom has an outside basis of $100,000 in the ABC Partnership as of December 31 of the current year. On that date the partnership makes a current distribution to Tom of $50,000 cash and inventory with and inside basis to the partnership of $10,000 and a fair market value of $60,000. How much gain or loss will Tom recognize on the distribution?

a) $40,000 loss

b) $10,000 gain

c) $50,000 gain

d) none of the above