LO.2, 5 Assume the same facts as in Problem 21, except that the property contrib- uted by Lee has a fair market value of $27,500 and is subject to a nonre- course 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?