ed contributes real property to a partnership in exchange for a $50\%$ capital and profits interest in the partnership. The real property has a fair market value of $$1,500,000$ and a tax basis of $$1,000,000.$ The property is encumbered by a nonrecourse mortgage of $$1,200,000$ that the partnership assumes in the transaction. What amount of the liability is allocable to Ted?

a$.$

$$700,000$

b$.$

$$300,000$

c$.$

$$600,000$

d$.$

$$1,200,000$