Blake and Ryan form the Poole Partnership. Blake contributes cash of $15,000. Ryan contributes land with an adjusted basis of $10,000 and a fair market value of $21,000.

The land is subject to a $6,000 mortgage that Poole assumes. Blake and Ryan both receive a 50 percent interest in Poole. What is Ryan’s recognized gain or loss on the contribution?

a. $4,000

b. $5,000

c. $11,000

d. $16,000

e. None of the above