1. Jennifer contributes an asset to a partnership in exchange for a partnership interest of 40 percent. The adjusted basis of the asset she contributes is $60,000 with a fair market value of $200,000. The partnership assumes Jennifers liability of $20,000 as part of the transaction. Assume no other partnership liabilities. What is Jennifers outside basis?

1. $35,000
2. $48,000
3. $40,000
4. $200,000
5. None of these

Please explain ASAP. I'm not getting any of the answer choices as my answer.