Nicole owns a 50% interest in partneship J&K. She contributed a computer system with a FMV of $15,000 and an adjusted basis of $10,000 to the partnership. Neither Nicole nor the partnership recognized any gain when the property was contributed. Which of the follow is true regarding the partnership's basis in the compiuter system and Nicole's outside basis?

1. Partnerships basis in computer system - 10,000. Nicole's outside basis increases by 10,000

2. Partnerships basis in computer system - 10,000, Nicole's outside basis increases by 15,000

3. Partnerships basis in computer system - 15,000. Nicole's outside basis increases by 10,000

4. Partnerships basis in computer system - 15,000. Nicole's outside basis increased by 10,000.