Timothy receives a proportionate current (nonliquidating) distribution when the basis of his partnership interest is $60,000. The distribution consists of $80,000 cash and inventory (adjusted basis to the partnership of $10,000, fair market value of $20,000). How much gain or loss does Timothy recognize, and what is his basis in the distributed inventory and in the partnership interest following the distribution? a) $20,000 capital gain; $0 basis in inventory; $0 basis in partnership interest. b) 50 gain or loss; $10,000 basis in inventory; 80 basis in partnership interest c) $20,000 capital gain: $10,000 basis in inventory; $0 basis in partnership interest. d) so gain or loss; $20,000 basis in inventory; $50,000 basis in partnership interest. $20,000 ordinary income; 80 basis in inventory; $20,000 basis in partnership interest