35. The ABCD partnership has four partners. Each partner’s adjusted basis in the

Question

35. 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 $30,000 in cash plusl 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. $65,000

c.   $80,000

d.   $110,000

Explanation / Answer

Answer:- Each partner's adjusted basis in the partner's partnership interest at the close of last year =

d. $110,000 (100,000+10,000) I.e partner's adjusted basis on first day of last year+distributions having basis to partnership

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.