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

a) Allowable loss $19,000, Adjusted basis $1,000

b) Allowable loss $20,000, Adjusted basis $0

c) Allowable loss $34,000, Adjusted basis $0

d) Allowable loss $34,000, Adjusted basis $1,000.

I had a study question which I got correct that indicates that the answer should be Allowable loss $20,000, Adjusted basis $0.

Can someone please answer and explain how they arrived at their answer.

Thank you.