Ask Question
19 May, 17:50

Partner Beth has a basis of $10,000 in a partnership at the beginning of the year. She receives $6,000 in cash distributions, her distributive share of income is $5,000, and she receives a land distribution with a basis of $8,000 (FMV $20,000). What is Beth's partnership interest basis at the end of the year?

a. $0

b. $1,000

c. $9,000

d. $10,000

+1
Answers (1)
  1. 19 May, 21:02
    0
    b. $1,000

    Explanation:

    Basis at the beginning of the year $10,000

    Less cash received $6,000

    =$4,000

    Distributive share of income is $5,000

    Less land distribution with a basis of $8,000

    =$3,000

    Hence:

    $4,000-$3,000

    =$1,000

    Therefore Beth's partnership interest basis at the end of the year will be $1,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Partner Beth has a basis of $10,000 in a partnership at the beginning of the year. She receives $6,000 in cash distributions, her ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers