Question - Tom and Jerry decide to start a Limited Partnership with Tom being the general partner and Jerry being the limited partner. Tom contributes cash of $20,000 to the partnership and Jerry contributes land with a basis of $20,000, fair market value of$40,000. The land is encumbered by a recourse mortgage of $20,000. Jerry's basis in his partnership interest is:
a. $30,000
b. $10,000
c. $40,000
d. $0