Misty and John Formed the MJ Partnership

question 183

Multiple Choice

Misty and John formed the MJ Partnership. Misty contributed $50,000 of cash in exchange for her 50% interest in the partnership capital and profits. During the first year of partnership operations, the following events occurred: the partnership had a net taxable income of $20,000; Misty received a distribution of $12,000 cash from the partnership; and Misty had a 50% share in the partnership's $60,000 of recourse liabilities on the last day of the partnership year. Misty's adjusted basis for her partnership interest at year end is:

• A) $48,000.
• B) $60,000.
• C) $78,000.
• D) $88,000.
• E) $90,000.

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Definitions:

Premenstrual Syndrome (PMS)

A collection of physical and emotional symptoms that occur in the one to two weeks before a woman's period.

Toxic Shock Syndrome (TSS)

A rare, potentially fatal condition caused by bacterial toxins, often associated with tampon use or nasal packing.

Secondary Amenorrhea

The cessation of menstrual periods for three months or more after regular menstrual cycles have been established, not due to pregnancy, menopause, or other natural reasons.

Secondary Dysmenorrhea

Painful menstruation that is caused by an underlying disease, disorder, or structural abnormality in the reproductive organs.