Xena and Xavier Form the XX LLC

Multiple Choice

Xena and Xavier form the XX LLC. Xena contributes cash of $20,000, land (basis = $40,000; fair market value = $25,000) , equipment (basis = $0; fair market value = $35,000) , and inventory (basis = $30,000; fair market value =
$40,000) . Xavier contributed $120,000 of cash. How much is the partnership's basis in the land, equipment, and inventory, and how much is Xena's basis in the partnership interest?

A) $25,000 land, $0 equipment, $30,000 inventory; $55,000 partnership interest.
B) $40,000 land, $0 equipment, $30,000 inventory; $90,000 partnership interest.
C) $25,000 land, $35,000 equipment, $30,000 inventory; $105,000 partnership interest.
D) $40,000 land, $35,000 equipment, $40,000 inventory; $135,000 partnership interest.