For the tax year, ABC partnership reported $68,000 ordinary loss and $30,000 increase in recourse liabilities for which the partners are liable. Anne, a 50% owner, had an adjusted basis of $20,000 at the beginning of the year. What is Annes allowable loss and her adjusted basis in ABC at the end of the year?

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	Allowable loss: $19,000. Adjusted basis: $1,000.
	Allowable loss: $20,000. Adjusted basis: $0.
	Allowable loss: $34,000. Adjusted basis: $0.
	Allowable loss: $34,000. Adjusted basis: $1,000.