What is Matt's basis at the end of the second year if they organize the business as a partnership?
A)$0
B)$11,700
C)$27,950
D)$28,600
E)$33,800

Question

Quizplus · Accepted Answer

Matt's basis in a partnership is calculated by adding his initial contribution to the partnership and his share of the partnership's income, and subtracting any distributions he received. The correct basis at the end of the second year is $27,950.

What Is Matt's Basis at the End of the Second