At the Beginning of the Current Year, K's Basis in Her

question 11

Multiple Choice

At the beginning of the current year, K's basis in her partnership interest was $35,000.At the end of the year, K received a K-1 from the partnership that showed the following: Increase in share of partnership liabilities $\quad$$\$ 8,700$
Cash withdrawal $\quad$$\quad$ 20,000
Partnership taxable income $\quad$ 13,500
Dividend income $\quad$$\quad 5,000$
Short-term capital loss $\quad$$\quad 1,400$
Charitable contribution $\quad$$\quad 500$
Special allocation of depreciation $\quad$$\quad$ 1,800 Based on these facts, compute K's basis in her partnership interest at the beginning of the next year.

• A)$31,200
• B)$42,200
• C)$31,700
• D)$38,500
• E)$39,900

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Definitions:

Diagnostic and Statistical Manual

A publication by the American Psychiatric Association that provides a comprehensive classification of mental disorders.

Paraphilic Urge

A strong or persistent desire characterized by unusual or deviant sexual interests.

Sexual Interest

An inclination to behave sexually.

Genital Stimulation

The act of physically touching or applying pressure to the genital areas to achieve sexual arousal and possibly orgasm.