Choice "A" is correct. Curry's initial basis in the partnership is Curry's adjusted basis in the property contributed ($30,000) less the mortgage assumed by the other partner (50% × $12,000), or $30,000 − $6,000=$24,000.Choice "c" is incorrect. Curry contributed land with a mortgage, not cash. Curry's basis is the adjusted basis of property contributed by Curry, less any mortgage assumed by other partners.
Choice "d" is incorrect. The mortgage on the land contributed by Curry and assumed by the other partner must also be taken into consideration.
Choice "b" is incorrect. Only the percentage of the mortgage assumed by the other partner, not the entire mortgage, will reduce Curry's initial basis.