Question: A new partner contributes property worth $ 1 0 0 , 0 0 0 and an adjusted basis to new partner of $ 2 5

A new partner contributes property worth $100,000 and an adjusted basis to new partner of $25,000 to a partnership in return for a 20% interest in the partnership. The property was subject to an outstanding mortgage of $20,000. What is the new partner's basis in the partnership? 
 
  

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