Sophie Received a 30 Percent Interest in a General Partnership

Multiple Choice

Sophie received a 30 percent interest in a general partnership in exchange for property valued at $35,000 (adjusted basis = $25,000) and services valued at $5,000.In addition, the partnership assumed the $10,000 liability on the property.What is Sophie's basis in her partnership interest?

A) $20,000
B) $23,000
C) $25,000
D) $39,000