Elena Owns 25% of a Partnership That Reported Net Income

question 26

Multiple Choice

Elena owns 25% of a partnership that reported net income of $100,000 for the year.Elena's basis in her partnership interest is $20,000 at the beginning of the year.During the year $5,000 was distributed to Elena from the partnership.What is Elena's basis at the end of the year?

• A)$40,000
• B)$30,000
• C)$25,000
• D)$20,000

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Definitions:

Sound Localization

The ability to determine the origin of a sound source in space.

Basilar Membrane

A critical structure in the cochlea of the inner ear, which plays a key role in the mechanotransduction of sound waves to neural signals.

Place Theory

A theory concerning the perception of sound that posits that different parts of the cochlea are activated by different frequencies.

Perceived Pitch

The subjective experience or interpretation of the frequency of a sound, determining how high or low it seems.