Problem
Jones and Matthews formed Major Partnership as equal partners by contributing the following assets:
Jones:
Cash - Adjusted basis = $45,000 and FMV = $45,000
Matthews:
Land - Adjusted basis = $30,000 and FMV = $57,000
The land was held by Matthews as a capital asset, subject to a $12,000 mortgage, that was assumed by the partnership.
Question: What is Matthews initial basis in the Partnership interest?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.