Stan Had a Basis in His Partnership Interest at the Beginning

question 12

Multiple Choice

Stan had a basis in his partnership interest at the beginning of last year of $30,000. There was no change in partnership liabilities during the year. His share of the partnership's ordinary loss last year was $40,000 and the partnership had no separately stated items. This year, Stan has a distributive share of ordinary income of $30,000. The taxable income from the partnership reported on Stan's personal income tax return this year (ignoring the at-risk and passive activity loss limitations) is

• A)$10,000 ordinary loss.
• B)$20,000 ordinary income.
• C)$30,000 ordinary income.
• D)$40,000 ordinary income.

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Definitions:

Catalogue Showcasing

The display or listing of products in a catalog format, aimed at providing detailed information to customers for the purpose of promoting sales.

Invitation Negotiate

A proposal or offer made with the intention of engaging another party in negotiations to reach a mutual agreement.

Baked Goods

Edible items that are typically prepared from a dough or batter and cooked by baking, such as bread, cookies, cakes, and pastries.

Reward Offer

A promise of compensation made to the public or specific individuals for performing a task or providing information.