In the current year,Darlene purchases a 20% interest in the Grant Partnership (GP)for $10,000.During the current year,GP has a taxable income of $80,000 and Darlene withdraws $5,000 of cash from the partnership.Darlene's income to be reported from her investment in GP and her basis in GP at the end of the year is:
$\text {\quad Income \quad Basis}$
a. $\$ 16,000 \quad \$ 21,000$
b. $\$ 5,000 \quad \$ 26,000$
c. $\$ 16,000 \quad \$ 10,000$
d. $\$ 5,000 \quad \$ 10,000$

Question

In the current year,Darlene purchases a 20% interest in the Grant Partnership (GP)for $10,000.During the current year,GP has a taxable income of $80,000 and Darlene withdraws $5,000 of cash from the partnership.Darlene's income to be reported from her investment in GP and her basis in GP at the end of the year is:
 $\text {\quad Income  \quad   Basis}$
a. $\$ 16,000 \quad \$ 21,000$
b. $\$ 5,000 \quad \$ 26,000$
c. $\$ 16,000 \quad \$ 10,000$
d. $\$ 5,000 \quad \$ 10,000$

Quizplus · Accepted Answer

The Answer of In the current year,Darlene purchases a 20% interest in the Grant Partnership (GP)for $10,000.During the current year,GP has a taxable income of $80,000 and Darlene withdraws $5,000 of cash from the partnership.Darlene's income to be reported from her investment in GP and her basis in GP at the end of the year is:
 $\text {\quad Income  \quad   Basis}$
a. $\$ 16,000 \quad \$ 21,000$
b. $\$ 5,000 \quad \$ 26,000$
c. $\$ 16,000 \quad \$ 10,000$
d. $\$ 5,000 \quad \$ 10,000$

In the Current Year,Darlene Purchases a 20% Interest in the Grant