Sebastian Contributed Property with a Tax Basis of $30,000 and a Fair

Multiple Choice

Sebastian contributed property with a tax basis of $30,000 and a fair market value of $75,000 to a new partnership in exchange for a 50 percent interest.The property was encumbered by a $50,000 mortgage that the partnership assumed.The other partner contributed $25,000 cash.What is Sebastian's basis in his partnership interest?

A) $5,000
B) $25,000
C) $30,000
D) $50,000