Abby Contributed Property with a $80,000 Basis and Fair Market

Multiple Choice

Abby contributed property with a $80,000 basis and fair market value of $120,000 to the ABC Partnership in exchange for a 50% interest in partnership capital and profits.During the first year of partnership operations, ABC had net taxable income of $60,000 and tax-exempt income of $56,000.The partnership distributed $24,000 cash to Abby.Her share of partnership recourse liabilities on the last day of the partnership year was $32,000.Abby's adjusted basis (outside basis) for her partnership interest at year-end is:

A) $110,000.
B) $146,000.
C) $144,000.
D) $196,000.
E) Some other amount.