Ryan Is a 25% Partner in the ROCC Partnership

question 79

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) $190,000.

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Definitions:

Propanenitrile

An organic compound with the formula CH3CH2CN, also known as ethyl cyanide, a colorless liquid used as a solvent and in organic synthesis.

Boiling Point

The temperature at which a liquid's vapor pressure equals the external pressure surrounding the liquid, causing it to turn into a vapor.

Propanamide

An organic compound consisting of a propyl chain attached to a nitrogen atom of an amide group.

N-Methylacetamide

An organic compound characterized by a methyl group attached to the nitrogen atom of an acetamide.