24.

Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, Gerald contributed a building with a FMV of $31,000. His adjusted basis in the building was $15,500. In addition, the building was encumbered with a $9,300 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution? Multiple Choice $24,800 $6,200 $21700 S9,300