Olivia and Paul Formed the OP Partnership

Multiple Choice

Olivia and Paul formed the OP Partnership.Olivia contributed $50,000 of cash in exchange for her 50% interest in the partnership capital and profits.During the first year of partnership operations, the following events occurred: the partnership had net taxable income of $70,000; Olivia received a distribution of $17,000 cash from the partnership; and she had a 50% share in the $40,000 of partnership recourse liabilities on the last day of the partnership year.Olivia's adjusted basis for her partnership interest at year-end is:

A) $105,000
B) $88,000.
C) $90,000.
D) $50,000.
E) None of the above.