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

question 45

Multiple Choice

At the beginning of the year, Ryan's capital account balance in the RUS Partnership (in which he 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:

Brachial Artery

A major blood vessel of the upper arm, responsible for providing oxygenated blood to the upper limb, branching from the shoulder to the elbow.

Lingual Artery

A branch of the external carotid artery that supplies blood to the tongue.

Maxillary Artery

A major artery that supplies blood to various structures of the face, including the maxilla (upper jaw) and deep facial areas.

Radial Artery

This is one of the major arteries in the forearm, commonly used for checking the pulse.