Gearty’s adjusted basis in Worthington Company, a partnership, was $18,000 at the time Gearty received the following proportionate nonliquidating distributions of partnership property.
Cash .......................................$ 6,000
Land
Adjusted basis ......................14,000
Fair market value ................12,000
Inventory
Adjusted basis ......................7,000
Fair market value ...............10,000
What is Gearty’s tax basis in the land received from the partnership?
a. $0
b. $5,000
c. $12,000
d. $14,000