2. On July 1 of the current year, Bertram acquired a 25% intrest in sycamore company, a partnership, by contributing property with an adjusted basis of $7000 and a fair market value of $12,000. The property was subject to a mortgage of $8000 which was assumed by Sycamore company. What is Bertram's basis in his partnership interest in Sycamore company immediately after the partnership contribution?

A. $7000

B. $1,000

C. $12,000

D. $0

E. None of these choices are correct