Question $36$

$3$ pts

Barbara has a basis in her partnership interest of $$50,000$ when her interest was terminated in a Complete Liquidation. Barbara received a Capital Asset with an Adjusted Basis to the Partnership of $$30,000$ and a Fair Market Value of $$40,000.$ Assuming the Optional Basis Adjustment election was properly made, the proper adjustment made to the basis of the remaining assets of the Partnership was:

$$20,000$ Decrease.

$$20,000$ Increase.

$$10,000$ Increase.

$$10,000$ Decrease.