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:

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream, regulating various bodily functions.

Motor Neurons

Nerve cells forming part of the nervous system that initiate and regulate the contraction of muscles.

Serotonin

A neurotransmitter involved in regulating mood, sleep, appetite, and pain.

Norepinephrine

A neurotransmitter and hormone involved in the body’s fight-or-flight response, affecting attention and responding actions.