Jack, a one-third partner in the BKL partnership, receive a proportional distribution to liquidate her partnership interest. The distribution consists of $50000 cash and inventory with a fair value of $50,000 (inside basis is $30,000). Jack's outside basis is $90,000 including her $20,000 share of BKL'S liabilities. What is the amount and character of Jack's recognized gain or loss and what basis will Jack have in the distributed inventory?
A. $10,000 gain, $30,000 basis in inventory
B. 20,000 gain, $50,000 basis in inventory
C. o gain, $20,000 in inventory
D. None of the above is correct