Allison Is a 40% Partner in the BAM Partnership

question 59

Multiple Choice

Allison is a 40% partner in the BAM Partnership.At the beginning of the tax year, Allison's basis in the partnership interest was $100,000, including her share of partnership liabilities.During the current year, BAM reported an ordinary loss of $60,000.In addition, BAM distributed $8,000 to Allison and paid partner Brian a $20,000 consulting fee (neither of these amounts was deducted in determining the $60,000 loss from operations) .At the end of the year, Allison's share of partnership liabilities decreased by $10,000.Assuming loss limitation rules do not apply, Allison's basis in the partnership interest at the end of the year is:

• A)$2,000.
• B)$50,000.
• C)$70,000.
• D)$100,000.
• E)None of the above.

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Definitions:

Expressive Behaviors

Actions that communicate an individual's emotional state or intentions to others, ranging from facial expressions to body movements.

Physiological Arousal

The activation of the body's central nervous system, leading to physical responses such as increased heart rate and muscle tension.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and environment, accessible to introspection and report.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, both, neither, or another gender.