Kenneth receives a proportionate, nonliquidating distribution from the Fern Partnership. The distribution consists of $10,000 cash and property with an adjusted basis to the partnership of $40,000 and a fair market value of $58,000. Immediately before the distribution, Kenneth's adjusted basis for his partnership interest is $75,000. Kenneth's basis in the noncash property received is:
A. $25,000
B. $40,000
C. $58,000
D. $65,000