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: ordinary business 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) ($12,000)
B) ($9,000)
C) $0
D) $15,000
E) $18,000