Edger and Franz each contribute $15,000 to Partnership E/F for a 50% interest in capital and profits. However, losses are split 60% to Edger and 40% to Franz. At the end of the first year, the E/F Partnership balance sheet is as follows:
Cash A/B $8,000, FMV $8,000
Receivables A/B $0, FMV $12,000
Land A/B $30,000, FMV $25,000
Recourse debt A/B $10,000,FMV $10,000
Edger Capital A/B $14,000,FMV $25,000
Franz Capital A/B $14,000, FMV $25,000
How much of the debt is included in Edger's outside Adjusted Basis?
A. $5,000
B. $8,800
C. $6,000
D. $6,600