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Ernesto contributed $30,000 in cash for a 25% interest in a partnership. He also contributed property with an adjusted basis of $20,000 and a liability

Ernesto contributed $30,000 in cash for a 25% interest in a partnership. He also contributed property with an adjusted basis of $20,000 and a liability of $10,000. What is Ernesto's basis in his partnership interest? $40,000 $42,500 $47,500 $50,000

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