A reduction of a partner's share of partnership liabilities will have what effect on the partner's basis in the partnership interest?

a. There is no effect on partnership basis.

b. The same result (basis reduction and/or gain recognition) as if the partner received a distribution of that same amount of cash.

c. A reduction of the partner's basis by the amount of the partner's share of liability reduction, without regard to the amount of the partner's basis before the liability share reduction.

d. An increase in the partner's basis by the amount of the partner's share of liability reduction, without regard to the amount of the partner's basis before the liability share reduction.