Please show detailed calculations and explanations. Answers without showing calculations/explanations, will not receive credit.

Hilary had an outside basis in LTL General Partnership of $10,000 at the beginning of the year. LTL reported the following items on Hilary's K-1 for the year: ordinary business income of $5,000, a $10,000 reduction in Hilary's share of partnership debt, a cash distribution of $20,000, and tax-exempt income of $3,000.

What is Hilary's adjusted basis at the end of the year?

What is her gain/loss recognized at the end of the year (if any)? If so, what is the characteristic of that gain/loss?