On July 1, Alexandra contributes business equipment (which she had purchased two years ago) having a $45,000 FMV and a $40,000 adjusted basis to the AX Partnership in exchange for a 25% interest in the capital and profits. The basis of Alexandra's partnership interest is

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The basis of Alexandra's partnership interest is her adjusted basis in the contributed property, which is $40,000.

On July 1, Alexandra Contributes Business Equipment (Which She Had