Basis of a Partnership rest. Anita has a one-half interest in the AB Partnership. Anita's basis in her interest at the beginning of the current year is $75,000. During the year, the following events occur: Partnership liabilities increase by $50,000. Partnership earns $60,000 of ordinary income. Partnership recognizes $20,000 of capital losses. Partnership incurs $3,000 of nondeductible expenses. Partnership earns $10,000 of tax-exempt interest. Anita withdraws $15,000 in cash. Anita contributes land having a $20,000 adjusted basis and a $100,000 FMV as an ad- ditional capital contribution without increasing her interest in the partnership. a. What gain (if any) does Anita recognize on the transfer of the land to the partnership? b. What is Anita's basis in her partnership interest at the end of the current year?