Tom and Jerry decide to start a Limited Partnership with Tom being the general partner and Jerry being the limited partner. Tom contributes cash of $20,000 to the partnership and Jerry 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. Jerrys basis in his partnership interest is:

a. $30,000 b. $10,000 c. $40,000 d. $0