26- Binita contributed property with a basis of $40,000 and a value of $50,000 to the BE Partnership in exchange for a 20% interest in partnership capital and profits. During the first year of partnership operations, BE had net taxable income of $30,000 and tax-exempt interest income of $10,000. The partnership distributed $10,000 cash to Binita. Her adjusted basis (outside basis) for her partnership interest at year-end is:

a.$70,000.

b.$36,000.

c.$38,000.

d.$60,000.

27- At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $61,600, including his $6,160 share of partnership debt. At the end of the tax year, his share of debt was $9,240. His share of the partnership's income for the year was $24,640, and he received cash distributions totaling $15,400. In addition, his share of the partnership's nontaxable income was $1,232.

How much is Barnaby's basis at the end of the tax year?

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