Terri Owns a 50 Percent Interest in the TT Partnership

question 93

Multiple Choice

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year, her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is her basis in her partnership interest at the end of the year?

• A)$111,000
• B)$75,000
• C)$51,000
• D)$31,000

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Definitions:

Private Acceptance

Conforming by altering private beliefs as well as public behavior.

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them, resulting in social harmony and cohesion.

Informational Influence

The effect on an individual's behavior or attitudes caused by the desire to be correct and to understand the proper way to act in a given situation.

Informational Influence

A form of social influence wherein individuals change their opinions or behaviors in response to receiving new information or observing others.