On January 1 of the Current Year,Sarah and Bart Form

Multiple Choice

On January 1 of the current year,Sarah and Bart form an equal partnership.Sarah makes a cash contribution of $60,000 and a property contribution (adjusted basis of $160,000;fair market value of $140,000) in exchange for her interest in the partnership.Bart contributes property (adjusted basis of $120,000;fair market value of $200,000) in exchange for his partnership interest.Which of the following statements is true concerning the income tax results of this partnership formation?

A) Sarah has a $200,000 tax basis for her partnership interest.
B) The partnership has a $140,000 adjusted basis in the property contributed by Sarah.
C) Bart recognizes an $80,000 gain on his property transfer.
D) Bart has a $120,000 tax basis for his partnership interest.
E) None of the statements is true.