Kayce owns 60% of partnership XYZ. XYZ has $100,000 in net taxable income in 2019. Kayce must include $60,000 on her personal tax return. What will be the impact on Kayces basis in the partnership?

Kayces basis in the partnership decrease by $60,000

Kayces basis in the partnership increases by $100,000

Kayces basis in the partnership increases by $60,000

Kayces basis in the partnership will remain the same