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A new partner, Margaret, contributes cash and assumes a share of Taylor Partnership liabilities. Zachary's interest in the partnership is reduced by 5% due to

A new partner, Margaret, contributes cash and assumes a share of Taylor Partnership liabilities. Zachary's interest in the partnership is reduced by 5% due to the admission of Margaret. The partnership liabilities at the time Margaret is admitted are $200,000 and the partners share the economic risk of loss in the same way they share partnership profits. Zachary's basis in the partnership interest prior to Margaret's admission is $5,000. Due to the admission of Margaret, partner Zachary has

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