Jerry Corp and Mr. Pegs formed a 50/50 general partnership. Jerry contributed $500,000 cash, and Mr. Pegs contributed a building with a $500,000 FMV and $300,000 tax basis. The partnership immediately borrowed $700,000 of recourse debt. What is Jerry's tax basis in its partnership interest? Group of answer choices $500,000 $1,200,000 $850,000 $650,000