Abby and Bob form a partnership where each has a 50% interest in capital and profits. Abby contributes cash of $25,000 and land valued at $25,000. Abby has a basis in the land of $20,000 and has held it for two years. Partner Bob contributes equipment (basis to Bob of $15,000, FMV of $30,000) and inventory (basis to Bob of $10,000 FMV $20,000). Partner Bob would recognize Section 1245 gain of $15,000 on the hypothetical sale of the equipment to a third party at the time of contribution after having depreciated it for several years. What is each partners basis in their partnership interest?

	A.	Abby receives a basis of $45,000 and Bob receives a basis of $50,000.
	B.	Abby receives a basis of $45,000 and Bob receives a basis of $25,000.
	C.	Both receive a basis of $50,000.
	D.	Abby receives a basis of $50,000. Bob receives a basis of only $25,000 because Bob will have to recognize a total of $25,000 in Section 1245 gain and ordinary income on the partnerships disposition of the equipment and inventory, respectively.

Please give reasoning for the answer.