Cramer Corporation and Mr. Chips formed a general partnership. Cramer contributed $500,000 cash, and Mr. Chips contributed a building with a $500,000 FMV and $300,000 tax basis. The partnership immediately borrowed $700,000 of recourse debt. What is Cramer's tax basis in its partnership interest? (2021 ed.) 

A. $500,000 

B. $1,200,000 

C. $850,000 

D. $650,000 ......... 

Answer rating: 100% (QA)

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