Bart Contributes $100,000 to the Fish Partnership for a 40 $\begin{array}{lr}\text { First Bank (recourse) } & \$ 10,000 \\\text { Second Bank (nonrecourse) } & 30,000\end{array}$

question 17

Multiple Choice

Bart contributes $100,000 to the Fish Partnership for a 40% interest. During the first year of operations, Fish has a profit of $20,000. At the end of the first year, Fish has outstanding loans from the following banks. $\begin{array}{lr}\text { First Bank (recourse) } & \$ 10,000 \\\text { Second Bank (nonrecourse) } & 30,000\end{array}$ What is Bart's at-risk basis in Fish at the end of the first year?

• A)$100,000
• B)$108,000
• C)$112,000
• D)$124,000
• E)None of the above

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Definitions:

Ad-

A prefix indicating direction towards or addition to something.

Epidemic

A widespread occurrence of an infectious disease in a community at a particular time, affecting a disproportionately large number of individuals within a population.

Prefix

A letter or group of letters added to the beginning of a word to alter its meaning or create a new word.

Epi-

A prefix meaning 'upon', 'on', 'over', 'near', or 'at', often used in medical and scientific terminology to denote position or relationship.