For a 20% interest in partnership capital, profits, and losses, Thug contributes a machine having a basis of $30,000 and an FMV of $40,000. The partnership also assumes a $24,000 recourse liability secured by the machine. The partnership has $6,000 in recourse liabilities immediately preceding Thug's contributions. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. Thugs basis in the partnership interest is

A) $10,800. B) $13,200. C) $12,000. D) $30,000.