Partner Shin received a distribution of $60,000 cash from the Shamrock Partnership in complete liquidation of his partnership interest.  If Shin's outside basis immediately before the distribution was $90,000, and if the partnership has a § 754 election in effect, which of the following statements is true?  (Assume the partnership owns no "hot assets.")

a.         Shin will recognize a $30,000 capital loss on the distribution.

b.         The partnership will step-up the basis of its assets by $30,000.

c.         The partnership is not allowed a step-up adjustment in this situation.

d.         The partnership will step-up the basis of its capital and § 1231 assets by $30,000.

e.         None of the above.