Cramer Corporation and Mr. Chips formed a general partnership. Cramer contributed $500,000 cash, and Mr. Chips contributed a building with a $500,000 FMV and $300,000 tax basis. The partnership immediately borrowed $700,000 of recourse debt. What is Mr. Chips' tax basis in its partnership interest?

a. $500,000 b. $1,200,000 c. $850,000 d. $650,000 Please show work and reasoning. Am I correct in thinking the FMV of the bldg is irrelevant? Thank you! (2021)