The ABCD partnership has four partners. Each partner’s adjusted basis in the par
ID: 2577618 • Letter: T
Question
The ABCD partnership has four partners. Each partner’s adjusted basis in the partnership interest owned by that partner was $100,000 on the first day of last year. The partnership reported net income for last year of $80,000 (there were no separately stated items to take into account). The partnership distributed pro rata to each partner identical parcels of land that each had a fair market value of $25,000 and a basis to the partnership of $10,000. What is each partner’s adjusted basis in the partner’s partnership interest at the close of last year?
a. $90,000
b. $110,000
c. $120,000
d. $170,000
Explanation / Answer
Each partner’s adjusted basis in the partner’s partnership interest =100000+(80000/4)-10000= 110000 Option B is correct
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