On July 1,Alexandra Contributes Business Equipment (Which She Had Purchased

Multiple Choice

On July 1,Alexandra contributes business equipment (which she had purchased two years ago) having a $45,000 FMV and a $40,000 adjusted basis to the AX Partnership in exchange for a 25% interest in the capital and profits.The basis of Alexandra's partnership interest is

A) $5,000.
B) $40,000.
C) $45,000.
D) None of the above.