2)

Stephanie contributed property with a basis of $45,000 and a FMV of $55,000 to the SS Partnership in exchange for a 20% interest in partnership capital and profits. During the first year of partnership operations, SS had net taxable income of $30,000 and tax-exempt interest income of $10,000. The partnership distributed $15,000 cash to Stephanie. Her adjusted outside basis for her partnership interest at year-end is:

$60,000 $36,000 $38,000 $70,000