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Hannah received a one-third capital and profit (loss) interest in Gymtastic Limited Partnership (LP). In exchange for this interest, Hannah contributed a building with an
Hannah received a one-third capital and profit (loss) interest in Gymtastic Limited Partnership (LP). In exchange for this interest, Hannah contributed a building with an FMV of $20,000. Their adjusted basis in the building was $10,000. In addition, the building was encumbered with a $6,000 nonrecourse mortgage that Gymtastic LP assumed at the time the property was contributed. What is Hannah's outside basis immediately after their contribution?
A: $6,000
B: $4,000
C: $16,000
D: $14,000
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