Nanette and Noreen Formed the NN Partnership

Multiple Choice

Nanette and Noreen formed the NN Partnership.Nanette contributed $50,000 of cash in exchange for her 50% interest in the partnership capital and profits.Noreen contributed property with an adjusted basis of $25,000 and a fair market value of $50,000 for her 50% interest in the partnership capital and profits.During the first year of partnership operations, the following events occurred: the partnership had a net taxable income of $120,000; Nanette received a distribution of $16,000 cash from the partnership; and she had a 50% share in the $80,000 of partnership recourse liabilities on the last day of the partnership year.Nanette's adjusted basis for her partnership interest at year-end is:

A) $50,000
B) $134,000.
C) $150,000.
D) $166,000.
E) None of the above.