Gloria is a 30-percent general partner in the VH Partnership. During the year, VH borrows $40,000 from a bank to fund operations and is able to pay back $10,000 before year-end. VH also borrows $100,000 from Gloria’s wealthy retired uncle on a non-recourse basis using land held by the partnership as the collateral. How much does Gloria’s at-risk amount increase or decrease as a result of these transactions?

a. $9,000 increase

b. $30,000 decrease

c. $12,000 increase

d. $42,000 increase

e. $42,000 decrease