Adam Contributes Equipment with a Fair Market Value of $300,000

Multiple Choice

Adam contributes equipment with a fair market value of $300,000, an adjusted basis of $240,000, and subject to a $20,000 liability to form Onyx Partnership, a general partnership.Shayla contributes $280,000 cash.Adam and Shayla share equally in partnership profits and losses.What is Adam's and Shayla's basis for their partnership interests?

A) $240,000 to Adam, $290,000 to Shayla.
B) $240,000 to Adam, $280,000 to Shayla.
C) $230,000 to Adam, $280,000 to Shayla.
D) $230,000 to Adam, $290,000 to Shayla.
E) $240,000 to Adam, $300,000 to Shayla.