Hilary Had an Outside Basis in LTL, General Partnership of $10,000

Multiple Choice

Hilary had an outside basis in LTL, General Partnership of $10,000 at the beginning of the year. LTL reported the following items on Hilary's K-1 for the year: ordinarybusiness income of $5,000, a $10,000 reduction in Hilary's share of partnership debt, a cash distribution of $20,000, and tax-exempt income of $3,000. What is Hilary's adjusted basis at the end of the year?

A) $18,000.
B) $0.
C) $15,000.
D) ($9,000) .
E) ($12,000) .