Sharon contributed property to the newly formed QRST Partnership. The property had a $125,000 adjusted basis to Sharon and a $200,000 fair market value on the contribution date. The property was also encumbered by a $112,500 nonrecourse debt, which was transferred to the partnership on that date. Sharon is treated as a general partner. She is allocated 30% of QRST's profits. Sharon's basis in the partnership interest after the formation transaction is:

Group of answer choices

$147,500

$110,000

$46,250

$158,750

$35,000