Gloria is a 30% general partner in the VH Partnership. During the year, VH borrows $40,000 from a bank to fund operations and is able to pay back $10,000 before year end. VH also borrows $100,000 from Gloria’s wealthy retired uncle on a non-recourse basis using land held by the partnership as the collateral. How much does Gloria’s atrisk amount increase or decrease as a result of these transactions? 

a. $9,000 increase 

b. $30,000 decrease 

c. $12,000 increase

d. $42,000 increase 

e. $42,000 decrease