Can you please explain the answer?

63. Richard Wilson owns a 20 percent interest in PCW partnership . At the beginning of20*3 , Richard's basis in his partnership interest is $5, 000 . During 20*3 , the PCWreports a $ 20, 0do taxable income from its operations and also reports that it received$10,000 in tax - exempt interest income . FEW distributes $7, 500 to Richard during*20X3 Which of the following statements is correct regarding the 20X 3 tax year ?aRichard will include in his taxable income his distributive share of $6, 000 fromthe total partnership income for 20*3 .D .Richard will decrease the basis in his partnership interest by his distributive*share of $ 2, 000 from the partnerships tax - exempt interest .[ .Richard's basis in his partnership interest is $1 1 , 000 prior to taking into accountthe $ 7, 500 distribution .d .Richard will report as income the $1, 500 excess distribution above hisdistributive share of the total partnership income for 20*3