Choice "c" is correct.

In a liquidating distribution, the partner's basis for the distributed property is the same as the adjusted basis of his partnership interest (as the partner is simply exchanging his partnership interest for the distributed assets), reduced by any monies received in the same transaction.

Choice "b" is incorrect. This would be the answer if the distribution were a non-liquidating distribution (which would then mean that partner would still have a partnership interest with a basis of $2,000 ($60,000 - $58,000 land basis).

Choice "d" is incorrect. The fair market value of the asset is not considered in a liquidation.

Choice "a" is incorrect. The allocable basis must first be reduced by the amount of cash received.