Katlin contributes land to a partnership with a basis of $44,000 and a FMV of $56,000 in 2016. In 2018, when the FMV of the land is $58,000, the partnership distributes the land to Baily, another partner. Which of the following is true?

a. Katlin recognizes no gain or loss.

b. Baily recognizes a gain of $14,000.

c. Katlin recognizes a gain of $12,000.

d. Baily has a basis of $58,000 in the land.