At the Beginning of the Year, Ryan's Capital Account Balance

question 47

Multiple Choice

At the beginning of the year, Ryan's capital account balance in the RUS Partnership (in which Ryan owned a 40% interest) was $200,000. During the year Ryan contributed cash ($40,000) and property (basis = $20,000, fair market value = $30,000) . RUS reported ordinary income of $100,000 and tax-exempt income of $6,000. At the end of the year, the partnership distributed $6,000 of cash to Ryan. On the Schedule K-1, the partnership shows that Ryan had a $50,000 share of nonrecourse LLC debt at the end of the year. Using the tax basis method, how much is Ryan's ending capital account balance?

• A) $294,000.
• B) $296,400.
• C) $306,400.
• D) $344,000.
• E) $346,400.

---

Definitions:

Company's Image

The public perception of a company, shaped by its branding, actions, and communications.

Effective

Producing the intended or desired result with efficiency.

Edit

The process of reviewing and making changes or corrections to text or media to improve clarity, quality, and accuracy.

Goal

A desired result or outcome that a person or organization aims to achieve.