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 Misty had a 50% share in the partnerships $60,000 of recourse liabilities on the last day of the partnership year. Mistys adjusted basis for her partnership interest at year end is: a. $48,000. b. $60,000. c. $78,000. d. $88,000. e. $90,000.