On September 1, 2012, James Elton received a 25% capital
interest in Bredbo Associates, a partnership, in return for services
rendered plus a contribution of assets with a basis to Elton of
$25,000 and a fair market value of $40,000. The fair market value
of Elton’s 25% interest was $50,000. How much is Elton’s basis
for his interest in Bredbo?