$\backslash ($ S $\backslash )$ and $\backslash ($ D $\backslash )$ are equal partners in the SD general partnership.

As satisfaction of a $\backslash$$$60,000$ account receivable, SD accepts a building worth $\backslash (\backslash$$ $90,000\backslash ).$ The building is subject to a $\backslash (\backslash$$ $100,000\backslash )$ mortgage. SD takes the building subject to the mortgage but not assuming personal liability.

Prior to SD accepting the building, S$\text{'}$s partnership interest basis was $\backslash$$$40,000$ and D$\text{'}$s was $\backslash$$$40,000.$

$10$ Multiple Choice $1$ point

S$\text{'}$s basis in her partnership interest immediately after SD$\text{'}$s acceptance of the building is

$\backslash$$$40,000$

$\backslash$$$90,000$

$\backslash$$$100,000$

$\backslash$$$85,000$

None of these.

Multiple Choice $1$ point

SD$\text{'}$s basis in the building is

None of these.

$\backslash$$$90,000$

$\backslash$$$160,000$

$\backslash$$$100,000$

$\backslash (\backslash$$ $60,000\backslash )$