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Gavin Owns a 50% Interest in London Partnership \quad \quad \quad

Question 65

Multiple Choice

Gavin owns a 50% interest in London Partnership. His tax basis in his partnership interest at the beginning of the year was $20,000. His partnership Schedule K-1 showed the following:
Ordinary business income \quad\quad\quad\quad\quad\quad\quad $ 60,000
Share of partnership debt, beginning of year \quad 10,000
Share of partnership debt, end of year \quad\quad\quad 15,000
Calculate Gavin's tax basis in his partnership interest at the end of the year?


A) $85,000
B) $95,000
C) $75,000
D) $65,000

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