Higlo Paints Is a Partnership That Reports an Operating Income

question 92

Multiple Choice

Higlo Paints is a partnership that reports an operating income of $50,000 in the current year. Higlo also has a $20,000 Section 1231 gain from the sale of a building and $10,000 in nondeductible expenses. Bernice owns 20% of Higlo and withdraws $5,000 from the partnership during the current year. Bernice's basis will increase by:

• A)$5,000
• B)$7,000
• C)$9,000
• D)$10,000
• E)$12,000

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Definitions:

Brain

An organ of the central nervous system in vertebrates that coordinates sensory information and directs motor responses; center of thought and emotion.

Spinal Cord

The part of the central nervous system that extends from below the waist to the base of the brain.

Testosterone

A steroid hormone primarily found in males, responsible for the development of male secondary sexual characteristics and various other physiological functions.

Females

Refers to the sex of an organism, or part of an organism, that produces non-mobile ova (egg cells) and can typically bear offspring or produce seed.