immechately before the distribution is $$154,000$ KDP currently has a $$754$ efection in effect and has no hot assets or liatelies. Which of the folowing statements is true?

Mhitiple Cnoice

KDP will increase the bas$/$s of its assets by $$28,000$ and Kathy well recognize a $$28,000$ loss on the divtribution.

KDP will increase the basis of its assets by $$28\mathrm{.}000$ and Kathy will recopnive a $$2ta00$ gain on the distribution.

K$.$DP will decrease the basls of its assets by $$28,000$ and Kathy will recognize a $$2,8,000$ loss on the ditrribution.

$$ KDP will decrease the basis of its assets by $$28\mathrm{.}000$ and Kathy will recognize a $$28,000$ gain on the distribution.