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Catherine's basis was $50,000 in the CAR Partnership just before she received a proportionate current (nonliquidating) distribution consisting of land held for investment with a basis to CAR of $40,000 (value of $60,000), and inventory with a basis of $40,000 (value of $40,000). After the distribution, Catherine's bases in the land and inventory are:
a. $25,000 (land); $25,000 (inventory).
b. $60,000 (land); $40,000 (inventory).
c. $10,000 (land); $40,000 (inventory).
d. $40,000 (land); $10,000 (inventory).
e. $40,000 (land); $40,000 (inventory).
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