Two partners,Jake and Finn, form a partnership and both contribute $25,000 each. Jake is a general partner and Finn is a limited partner. The partnership also borrows $25,000 in the form of an unsecured note constituting a recourse liability to the partnership (total of $75,000 in cash). What is each partners outside basis in the partnership immediately following the partnerships acquisition of the $25,000 note?

A. Partners Jake and Finn each have a basis of $25,000, equal to the cash they contributed.

B. Partners Jake and Finn each have a basis of $37,500, equal to their $25,000 cash and their respective $12,500 shares of the note.

C. Partner Jake has a basis of $50,000 and Partner Finn has a basis of $25,000.

D. Partner Finn has a basis of $50,000 and Partner Jake has a basis of $25,000.