Question $10$

Assume the same facts as above, but the liability assumed is changed

At the beginning of the current year, Cari and Dan formed the CD Partnership by

transferring cash and property to the partnership in exchange for a partnership interest,

with each having a $50\%$ interest. Specifically, Cari transferred property having a $$100,000$

FMV$,$ a $$26,000$ adjusted basis, and subject to a $$60,000$ liability, which the partnership

assumed. Dan contributed $$50,000$ cash to the partnership.

What is Carl's beginning basis in the partnership at the time of contribution?

$$0$

$($$$4,000)$

$$26,000$

$$70,000$