Sarah has a $200,000 tax basis for her partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation?
A. Sarah has a $200,000 tax basis for her partnership interest.
B. The partnership has a $140,000 adjusted basis in the property contributed by Sarah.
C. Bart recognizes an $80,000 gain on his property transfer.
D. Bart has a $120,000 tax basis for his partnership interest.
E. None of the statements is true.