Joey and Bob Each Have 50% Interest in a Partnership

question 30

Multiple Choice

Joey and Bob each have 50% interest in a Partnership. Both Joey and the partnership file returns on a calendar year basis. Partnership Q had a $12,000 loss in 2014. Joey's adjusted basis in his partnership interest on January 1, 2014 was $5,000. In 2015, the partnership had a profit of $10,000. Assuming there were no other adjustments to Joey's basis in the partnership, what amount of partnership income (loss) should Joey show on his 2014 and 2015 individual income tax returns?

---

Definitions:

Interventions

Actions or processes aimed at altering the current situation, typically to achieve improvements or solve problems.

Deduction

An analytical method where a final judgment is derived from the alignment of several assumptions considered to be accurate.

Hypothesis Testing

A statistical method used to determine the likelihood that a hypothesis about a phenomenon is true based on sample data.

Statistical Analysis

The process of collecting, examining, interpreting, and presenting numerical data to discover underlying patterns and trends.