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_____ for Tax-Reporting Purposes

Question 42

Multiple Choice

_____ For tax-reporting purposes,


A) A partner's tax basis is the balance in his or her capital account.
B) Losses of a partnership increase tax basis.
C) Cash withdrawals decrease tax basis.
D) The assumption of debt by a partnership relating to an asset contributed by a partner increases the adjusted tax basis of the asset contributed.
E) None of the above.

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