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