Before Receiving a Liquidating Distribution, Kathy's Basis in Her Interest $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 5,000 & \$ 12,000 \\\hline\end{array}$$

Before receiving a liquidating distribution, Kathy's basis in her interest in the KLM Partnership is $30,000. The distribution consists of $5,000 in money, inventory having a $1,000 basis to the partnership and a $2,000 FMV, and two parcels of undeveloped land (not held as inventory) having basis of $3,000 and $9,000 to the partnership with FMVs of $5,000 and $12,000, respectively. What is Kathy's basis in each parcel of land?

A) $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 5,000 & \$ 12,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 3,000 & \$ 9,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 7,059 & \$ 16,941 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Parcel One } & \text { Parcel Two } \\\hline \$ 6,000 & \$ 18,000 \\\hline\end{array}$$