8. Linda and Ellen form an equal partnership. Linda contributes cash of $20,000 in exchange for a 50 percent partnership interest. Ellen contributes property with a fair market value of $30,000 (adjusted basis of $18,000) and subject to a liability of

$10,000 in exchange for her 50 percent interest in the partnership. What amount of gain must Ellen recognize as a result of her transfer of property to the partnership?

a. $7,000

b. $14,000

c. $20,000

d. $0

e. None of the above