Ricky, Bobby and Sam form a partnership. Bobby and Sam contribute $150,000 in cash. Ricky contributes $10,000 in cash and Land with a fair market value of $140,000 and an adjusted basis of $60,000. The land was purchased with a nonrecourse debt that is now worth $90,000.

1.What is Ricky's basis in his partnership interest? A. $130,000 B. $100,000 C. $120,000 D. $90,000

2. What is Bobby's basis in the partnership? A. $170,000 B. $180,000 C. $150,000 since Bobby does not have any liability for the mortgage assumed D. $100,000