An equal partnership is formed by Rita and Gerry. Rita contributes cash of $10,000 and a building with a fair market value of $150,000, adjusted basis of S55,000, and subject to a liability of S40,000. Gerry contributes cash of S100,000. What is Rita's basis in her partnership interest immediately after formation of the partnership? 1. $45,000 2. $70,000 3.$65,000 o 4. $35,000 QUESTION 19 The Nandina Corporation was formed and began operations on July 1, 2017, and incurred the following expenses during the year State fees for incorporation Legal and accounting fees incident to Legal fees for the issuance of stock Temporary directors' fees s 800 1,500 600 1,300 organization If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2017? o 1 $110 2, $120 o 3. $0 o 4. $130