Please use the below facts to answer the next two quesrtions:
1) Partner X acquires a 50% interest in a real estate partnership by contributing a parcel of property to the partnership. At the date of the contribution, the parcel had a fair market value of $50,000 and an adjusted basis in the hands of the contributing partner of $20,000.
Based upon the above facts, what would Partner X's basis be in his partnership interest immediately after contributing the parcel of property?
A. $25,000
B. $20,000
C. $50,000
D. None of the above.
2)Using the facts given in the previous question, what is partner X's basis in his partnership interest (immediately after the contribution of the property) assuming the parcel he contributed had a $10000 mortgage attached to it at the time Partner X contributed the property to the partnership?
A. $15000
B. $20000
C. $25000
D. $55000
E. None of the above.