Misty and John formed the MJ Partnership. Misty contributed $50,000 of cash in exchange for her 50% interest in the partnership capital and profits. During the first year of partnership operations, the following events occurred: the partnership had a net taxable income of $20,000; Misty received a distribution of $12,000 cash from the partnership; and on the last day of the year, the partnership took a loan from a bank for $60,000. Mistys adjusted basis for her partnership interest at year end is:

a. $88,000.

b. $78,000.

c. $60,000.

d. $90,000.

e. $48,000.