On September 1, 2023, Jerry Routon received a 25% capital interest in Ferro Associates, a partnership, in return for services rendered plus contribution of assets with a basis to Routon of $25,000 and a fair market value of $40,000. The fair market value of Routons 25% interest was $50,000. How much is Routons basis for his interest in Ferro? Select one:

a. $40,000

b. $25,000

c. $35,000

d. $50,000