Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of partnership operations, Rust had net taxable income of $30,000 and tax-exempt income of $28,000. The partnership distributed $12,000 cash to Betty. Her share of partnership recourse liabilities on the last day of the partnership year was $16,000. Betty's adjusted basis (outside basis) for her partnership interest at year-end is:

Group of answer choices

$73,000

$72,000

$98,000

$55,000

Some other amount.

Answer rating: 100% (QA)

answer 97000 Bettys ad... View the full answer