Sandy and Larry each have a 50% interest in SL Partnership. The partnership and the individuals file on a calendar year basis. For its last tax year, SL Partnership had a $30,000 ordinary loss. Sandy's adjusted basis in her partnership interest on January 1 of last year was $12,000. This year, SL Partnership had ordinary income of $20,000. Assuming there were no other adjustments to Sandy's basis in the partnership, what amount of partnership income (loss) would Sandy show on last year's and this year's individual income tax returns?

Last Year This Year

a. ($12,000) $ 7,000

b. ($12,000) $ 10,000

c. ($15,000) $ 7,000

d. ($15,000) $ 10,000