Ryan Is a 25% Partner in the ROCC Partnership

question 16

Multiple Choice

Ryan is a 25% partner in the ROCC Partnership. At the beginning of the tax year, Ryan's basis in the partnership interest was $90,000, including his share of partnership liabilities. During the current year, ROCC reported net ordinary income of $100,000. In addition, ROCC distributed $10,000 to each of the partners ($40,000 total) . At the end of the year, Ryan's share of partnership liabilities increased by $10,000. Ryan's basis in the partnership interest at the end of the year is:

• A)$90,000.
• B)$100,000.
• C)$115,000.
• D)$125,000.
• E)None of the above.