At the Beginning of the Year, Heather's "Tax Basis" Capital

Multiple Choice

At the beginning of the year, Heather's "tax basis" capital account balance in the HEP Partnership was $60,000.During the tax year, Heather contributed property with a basis of $10,000 and a fair market value of $30,000.Her share of the partnership's ordinary income and separately stated income and deduction items was $26,000.At the end of the year, the partnership distributed $10,000 of cash to Heather.Also, the partnership allocated $15,000 of recourse debt and $25,000 of nonrecourse debt to Heather.What is Heather's ending capital account balance determined using the "tax basis" method?

A) $86,000.
B) $96,000.
C) $101,000.
D) $126,000.
E) $136,000.