Question: Kathy purchases a one - third interest in the KDP Partnership from Paul for $ 6 0 , 0 0 0 . Just prior to

Kathy purchases a one-third interest in the KDP Partnership from Paul for $60,000. Just prior to the sale, Paul's outside and inside bases in KDP are $48,000. KDP's balance sheet includes the following:
Assets:BasisFMVCash$ 48,000$ 48,000Land held for investment96,000132,000
Liabilities and Capital:Capital-Paul48,000Capital-Kristi48,000Capital-David48,000
If KDP has a 754 election in place, what is Kathy's special basis adjustment?
Multiple Choice
$0
$36,000
$12,000
None of the choices are correct.

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