Clark and Lewis Are Partners Who Share the Profits and Losses

question 42

Essay

Clark and Lewis are partners who share the profits and losses of the C&L Partnership 60% and 40%, respectively. The tax basis of each partner's interest in the partnership as of December 31 of last year was as follows: Clark, $14,000; Lewis, $12,000. During the current year, the partnership had ordinary income of $20,000 and a long-term capital loss of $10,000 from the sale of securities. The partnership made cash distributions proportionately to the two partners during this year totaling $20,000. What is the amount of Lewis's tax basis of his partnership interest on December 31 of the current year?

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Definitions:

Surgical Site

The location on the body where a surgery is performed or an incision is made.

Postoperative Wound Care

The management and treatment of surgical incisions and wounds to promote healing and prevent infection after surgery.

Dressing

A protective or therapeutic covering applied to a wound or an area of damaged skin.

Floater

A nonsterile assistant who is free to move about the room during surgery and attend to unsterile needs.