Charleston Industries Partnership is a calendar year, accrual basis partnership. Mina owns a 51% interest in the partnership. Mina’s outside basis in her partnership interest was $250,000 (including her share of partnership liabilities) just before the partnership decided to terminate the partnership and liquidate. The partnership then paid off all partnership liabilities of $100,000 and then made a proportionate liquidating distribution to all the partners. Mina received a liquidating distribution of consisting of inventory (basis of $70,000, FMV of $100,000), and cash of $99,000. After the distribution, what is Mina’s recognized gain or loss (if any) and her basis in the inventory and partnership interest?

a. No gain or loss; $100,000 basis in inventory; $0 basis in partnership interest

b. No gain or loss; $70,000 basis in inventory and $30,000 basis in partnership interest

c. $81,000 loss; $70,000 basis in inventory; $0 basis in partnership interest

d. $30,000 loss; $70,000 basis in inventory and $0 basis in partnership interest