Ray, Ronnie and Joe Are Partners in a Limited Partnership

Multiple Choice

Ray, Ronnie and Joe are partners in a limited partnership.Ray and Ronnie, the limited partners, each own 45 percent of the partnership and Joe, the general partner, owns the other 10 percent.The partnership incurs $50,000 of nonrecourse debt and $100,000 of recourse debt.What is the effect on Joe's basis for these debts?

A) Increases by $155,000
B) Increases by $105,000
C) Increases by $100,000
D) Increases by $15,000