On July 1, 2017, Lester acquired a 30% interest in Cupcake Bakery, a partnership, by contributing to the partnership property with a an adjusted basis to him of $5,000 and a fair market value of $12,000 subject to a mortgage of $8,000 which was assumed by the partnership. What is Lesters basis in his interest in Cupcake Bakery?

a. $4,000

b. $5,000

c. $6,400

d. $-0-