Juliet contributed property with a $48,000 basis and fair market value of $100,000 to the JT Partnership in exchange for a 40% interest in partnership capital and profits. During the first year of partnership operations, JT had net taxable income of $40,000 and tax-exempt income of $80,000. The partnership distributed $40,000 cash to Juliet. Her share of partnership recourse liabilities on the last day of the partnership year was $30,000. Juliet's adjusted basis (outside basis) for her partnership interest at year-end is:

a. 64000

b. 126000

c. 70000

d. 86000

e. none of the above