On January 1 of the current year, Rachel and Bill form an equal partnership. Rachel makes a cash contribution of $40,000 and a property contribution (adjusted basis of $55,000; fair market value of $40,000) in exchange for her interest in the partnership. Bill contributes property (adjusted basis of $60,000; fair market value of $80,000) in exchange for his partnership interest. Which of the following statements is true concerning the income tax results of this partnership formation?
a. Rachel has an $80,000 tax basis for her partnership interest.
b. The partnership has a $40,000 adjusted basis in the property contributed by Rachel.
c. Rachel recognizes a $15,000 loss on her property transfer.
d. Bill has a $60,000 tax basis for his partnership interest.