Question: Ronald and Nancy decide to form their new nursery business as a partnership. Each will receive an equal capital and profits interest by contributing cash, property or both. In addition, their partnership will obtain a $50,000 nonrecourse loan from Fayetteville Bank at the time it is formed. Nancy contributes cash of $5,000 and a building ($30,000 A/B; $45,000 FMV). The building is secured by a $35,000 nonrecourse mortgage that the partnership will assume. What is Nancy's outside basis in her partnership interest?