Bev and Cabel each have a 50% ownership in Finch Partnership.Each partner has a partnership interest basis of $225,000.Finch's taxable income for the current year is $100,000,and it distributes $180,000 to each partner.Bev's partnership interest basis at the end of the year is:
A)$0.
B)$45,000.
C)$95,000.
D)$100,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Bev's partnership interest basis is increased by her share of Finch's taxable income and is decreased by the distribution she receives from Finch.
 11ea7f05_2e9b_1243_92e1_2b131248e594_TB4123_00

Bev and Cabel Each Have a 50% Ownership in Finch