LO.2 Assume the same facts as in Problem 16, except that the property contributed by Lee has a fair market value of $27,500 and is subject to a nonrecourse mortgage of $20,000.

a. What is Lee’s basis in his partnership interest?

b. How much gain must Lee recognize on the transfer?

c. What is Brad’s basis in his partnership interest?

d. What is Rick’s basis in his partnership interest?

e. What basis does the LBR Partnership take in the property transferred by Lee?