The basis to a partner of property distributed “in kind”

in complete liquidation of the partner’s interest is the

a. Adjusted basis of the partner’s interest increased by any cash distributed to the partner in the same transaction.

b. Adjusted basis of the partner’s interest reduced by any cash distributed to the partner in the same transaction.

c. Adjusted basis of the property to the partnership.

d. Fair market value of the property.

Items 65 and 66 are based on the following data:

Mike Reed, a partner in Post Co., received the following distribution from Post:

Post’s basis Fair market value Cash $11,000 $11,000 Inventory 5,000 12,500 Before this distribution, Reed’s basis in Post was $25,000.