Theo and Jordan decide to start a Limited Partnership with Theo being the general partner and Jordan being the limited partner. Theo contributes cash of $20,000 to the partnership and Jordan contributes land with a basis of $20,000, fair market value of $40,000. The land is encumbered by a recourse mortgage of $20,000. Jordans basis in his partnership interest is:

a. $30,000

b. $10,000

c. $40,000

d. $0