Erika Contributed Property with a Basis of $30,000 and a Value

Multiple Choice

Erika contributed property with a basis of $30,000 and a value of $40,000 to the BE Partnership in exchange for a 40% interest in partnership capital and profits. During the first year of partnership operations, BE had net taxable income of $60,000. The partnership distributed $10,000 cash to Erika. Erika's adjusted basis (outside basis) for her partnership interest at year-end is:

A) $24,000.
B) $30,000.
C) $44,000.
D) $54,000.
E) None of the above.