Abby Contributed Property with a $80,000 Basis and Fair Market

question 9

Multiple Choice

Abby contributed property with a $80,000 basis and fair market value of $120,000 to the ABC Partnership in exchange for a 50% interest in partnership capital and profits.During the first year of partnership operations, ABC had net taxable income of $60,000 and tax-exempt income of $56,000.The partnership distributed $24,000 cash to Abby.Her share of partnership recourse liabilities on the last day of the partnership year was $32,000.Abby's adjusted basis (outside basis) for her partnership interest at year-end is:

• A)$110,000.
• B)$146,000.
• C)$144,000.
• D)$196,000.
• E)Some other amount.

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