Edith Contributes Land Having $100,000 FMV and a $85,000 Adjusted

Edith contributes land having $100,000 FMV and a $85,000 adjusted basis,which is subject to a $66,000 mortgage in exchange for a one-third interest in the EHK Partnership.The partnership owes no other liabilities.After the contribution,Kate,Edith,and Helen share profits and losses equally and each has a one-third interest in the partnership capital.Assume that Kate has a basis in her partnership interest of $50,000 before Edith's contribution to the partnership.The effect of Edith's contribution on partner Kate's basis is to

A) decrease Kate's basis to $28,000.
B) increase Kate's basis to $72,000.
C) increase Kate's basis to $77,000.
D) no effect on Kate's basis.