Benson Contributed $60,000 of Cash in Exchange for a 50

Multiple Choice

Benson contributed $60,000 of cash in exchange for a 50% interest in the Palm partnership capital and profits.During the first year of partnership operations, Palm had net taxable income of $80,000.In addition Benson received a $20,000 distribution of cash from the partnership and he has a 50% share in the $26,000 of partnership recourse liabilities on the last day of the partnership year.Benson's adjusted basis (outside basis) for his partnership interest at year-end is:

A) $166,000.
B) $100,000.
C) $93,000.
D) $73,000.
E) None of the above.