George Pays $10,000 for a 20% Interest in a General

Multiple Choice

George pays $10,000 for a 20% interest in a general partnership, which has recourse liabilities of $20,000. The partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. George's basis in his partnership interest is

A) $10,000.
B) $12,000.
C) $14,000.
D) $30,000.