Question: 6 35. Assume instead that New Partner contributes property worth $10M and an adjusted basis to New Partner of $2M to a partnership in return

35. Assume instead that New Partner contributes property worth $10M and an adjusted basis to New Partner of $2M to a partnership in return for a 10% interest in the partnership. The property was subject to an outstanding mortgage of $6M. What is New Partner's basis in the partnership and how much income, if any must she recognize? a. $0 basis and $3.4M in income b. $0 basis and $4M in income C. $0 basis and $0 in income d. $2M in basis and $5.4M in income e. $4M in basis and $0 in income 36 1

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