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Question: Ashley and Greg form the AG General Partnership as equal partners. Ashley contributes cash of $50,000 and securities valued at $50,000 and an adjusted basis of $10,000. Greg contributes land with a fair market value of $100,000 and an adjusted basis of $75,000. During its first year of operations, the partnership borrows $100,000 on a recourse basis to purchase a fast food franchise. The partnership recognizes a loss of $40,000 during its first year of operations. What is Ashleys end-of-year basis in her partnership interest?
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