Partners X, Y, and Z form a partnership with X and Y as general partners, each having a 40% interest, and Z as a limited partner with a 20% interest (assume these allocations are respected for tax purposes because they satisfy the tests for substantial economic effect under Section 704(b)). Partner X contributes $10,000, Partner Y contributes $20,000, and Partner Z contributes $40,000. The partnership then borrows $30,000 on a recourse basis and uses the proceeds, along with each partners cash contributions, to purchase land for $100,000. What is each partners basis in the partnership immediately following the purchase of the land?

A) Xs basis is $28,000, Ys basis is $32,000, and Zs basis is $40,000.

B) Xs basis is $25,000, Ys basis is $35,000, and Zs basis is $40,000.

C) Xs basis is $10,000, Ys basis is $20,000, and Zs basis is $40,000.

D) Xs basis is $22,000, Ys basis is $32,000, and Zs basis is $46,000.