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Question - Ray, Ronnie, and Joe are partners in a limited partnership. Ray and Ronnie, the limited partners, each own 45% of the partnership, and Joe, the general partner, owns the other 10%. The partnership incurs $50,000 of nonrecourse debt and $100,000 of recourse debt. What is the effect on Joe's basis for these debts?
1. Increases by $155,000
2. Increases by $105,000
3. Increases by $100,000
4. Increases by $15,000
5. None of the above
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