An examination of the RB Partnership's tax books provides the following information for the current year:

Barry is a 30% partner in partnership capital,profits,and losses.Assume the adjusted basis of his partnership interest is $50,000 at the beginning of the year,and he shares in 30% of the partnership liabilities for basis purposes.
a.What is Barry's adjusted basis for the partnership interest at the end of the year?
b.How much income must Barry report on his tax return for the current year? What is the character of income?

Question

An examination of the RB Partnership's tax books provides the following information for the current year:
  
Barry is a 30% partner in partnership capital,profits,and losses.Assume the adjusted basis of his partnership interest is $50,000 at the beginning of the year,and he shares in 30% of the partnership liabilities for basis purposes. 
a.What is Barry's adjusted basis for the partnership interest at the end of the year?
b.How much income must Barry report on his tax return for the current year? What is the character of income?

Quizplus · Accepted Answer

The Answer of An examination of the RB Partnership's tax books provides the following information for the current year:
  
Barry is a 30% partner in partnership capital,profits,and losses.Assume the adjusted basis of his partnership interest is $50,000 at the beginning of the year,and he shares in 30% of the partnership liabilities for basis purposes. 
a.What is Barry's adjusted basis for the partnership interest at the end of the year?
b.How much income must Barry report on his tax return for the current year? What is the character of income?

An Examination of the RB Partnership's Tax Books Provides the Following