In the Current Year, Stephanie Formed an Equal Partnership with Jane.Stephanie

question 3

Multiple Choice

In the current year, Stephanie formed an equal partnership with Jane.Stephanie contributed land with an adjusted basis of $250,000 and a fair market value of $350,000.Stephanie also contributed $100,000 cash to the partnership.Jane contributed land with an adjusted basis of $150,000 and a fair market value of $200,000.The land contributed by Stephanie was encumbered by a $250,000 nonrecourse debt.Assume the partners share debt equally.Immediately after the formation, the basis of Stephanie's partnership interest is:

• A)$0.
• B)$225,000.
• C)$300,000.
• D)$325,000.
• E)None of the above.