George transferred land having a $170,000 FMV and a $60,000 adjusted basis, which is subject to a $150,000 mortgage in exchange for a one-third interest in the GEF Partnership. The partnership owes no other liabilities. George, Elena, and Franz share profits and losses equally and each has a one-third interest in partnership capital. The basis to the partnership of the land transferred by George
is
A) $20,000.
B) $60,000.
C) $110,000.
D) $170,000.
B) $60,000.
The partnership's basis in the property is the same as that of the transferor partner, even if gain is recognized by the contributing partner.
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