Al and Nancy form a partnership. Both Al and Nancy are general partners. Each takes a 50% interest in profits. Nancy contributes land on which Nancy owes (to the bank) $12,000. The partnership assumes this debt. Nancys basis in the land on the date of partnership formation is $15,000 and the lands fair market value on the date of partnership formation is $20,000. Compute Nancy's initial basis in her partnership interest (i.e., as of the formation date).

		a. $3,000.
		b. $21,000.
		c. $9,000.
		d. none of the above.

Compute the partnership's basis in the land as of the formation date.

		a. $20,000.
		b. $15,000.
		c. $9,000.
		d. none of the above.