Answer:
Option (C) is correct.
Explanation:
Given that,
Anna contributes = $50,000 of cash
Parcel of land:
Adjusted basis = $100,000
Fair market value = $150,000
The contributions are free from taxes and carryover basis is applicable; thus 100,000 basis in the land plus 50,000 cash basis.
Therefore,
Anna's tax basis for her partnership interest
:
= Adjusted basis + Cash contribution
= $100,000 + $50,000
= $150,000
Hence, Anna has a $150,000 tax basis for her partnership interest.