Question - Julie contributed fully depreciated ($0 basis) property valued at $20,000 to the JK Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of partnership operations, JK had net taxable income of $50,000. The partnership distributed $20,000 cash to Julie. Julie's adjusted basis (outside basis) for her partnership interest at year-end is:
a. $0.
b. $5,000.
c. $25,000.
d. $30,000.
e. None of the above.