Partner Martin contributes property with a Book Value of $100,000 and a Tax Basis of $60,000 to a partnership in exchange for a 10% interest in capital, profits, losses, and also for purposes of liability sharing.

During the first year of operations, Martin experiences the following:

1) Is allocated $50,000 of the partnership liabilities;

2) Is allocated $15,000 of the partnership ordinary income for both book and tax purposes;

3) is distributed $7,000 of cash by the partnership;

4) is relieved of $5,000 of partnership liabilities by reason of the partnership paying off a total of $50,000 of partnership liabilities.

WHAT IS THE ENDING VALUE OF MARTIN'S TAX CAPITAL ACCOUNT?

Question options:

	a. $153,000
	b. $108,000
	c. $68,000