Hunter contributes property having a $75,000 FMV and a $65,000 adjusted basis which is subject to a $36,000 mortgage in exchange for a one- fourth interest in the ABC Partnership. The partnership owes no other debts, but does assume this mortgage. Profits and losses are shared equally and each partner has a one- fourth interest in partnership capital. Hunter's basis in the partnership is
A) $48,000.
B) $74,000.
C) $38,000.
D) $84,000.
Correct Answer:
Verified
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