Question: 4. For a one third interest (33 1/3%) in partnership capital, profits, and losses, Nick contributes an automobile having a basis of $45,000 and an

4. For a one third interest (33 1/3%) in partnership capital, profits, and losses, Nick contributes an automobile having a basis of $45,000 and an FMV of $50,000. The partnership also assumes a $15,000 recourse liability secured by the automobile. The partnership has $12,000 in recourse liabilities immediately preceding Nick's contributions. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Nick's basis in the partnership interest is

A) $35,000.

B) $39,000.

C) $45,000.

D) $49,000.

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