The ABC Partnership has the following asset and liabilities before any reduction for year-end principal payments on the liabiities. Assume the book basis and tax basis are the same.

Assets Basis = $300,000 Value = $400,000 Nonrecourse debt Basis = $500,00 Value = $500,000. If the partners have a deficit in their capital accounts of ($100,000), what is the amount of minimum gain chargeback if partnership taxable income for the year is $20,000 and the liabilities are reduced by $150,000 to $350,000?

A. $0

B $20,000

C $50,000

D $150,000