On May $1,$ Year $1,$ Fred Sampler acquired a $30\%$ interest in Strong Company, a partnership, by contributing land with an adjusted basis of $$8,000$ and a fair market value of $$30,000.$ The land was subject to a mortgage of $$16,000,$ which was assumed by Strong. Strong had no other liabilities. What is Fred's basis in his interest in Strong?

Question $5$Answer

A$.$

$($$$3,200)$

B$.$

$$8,000$

C$.$

$$0$

D$.$

None of these

E$.$

$$4,200$