Brad and Rochelle agree to form Sail Away, Inc., a small family boat rental business. Brad agrees to contribute 20 sailboats (that he bought over the years and had a lot of fun with!) with a total basis of $70,000 and a FMV of $150,000. The boats have a loan attached to them, which will be assumed by Sail Away, that is a personal loan of $100,000. Rochelle agrees to contribute a small piece of waterfront property and a dock purchased many years ago with a total basis of $30,000 and a fair market value of $150,000. In return, each receives 50% of the 200 authorized shares of Sail Away stock. 

What is Sail Away's basis in the boats contributed by Brad?