At the end of Year 1, Tony had a tax basis of $40,000 in Tall Ladders, Limited Partnership. Tony has a 20 percent profits interest in Tall Ladders. For Year 2, Tall Ladders will pay Tony a $10,000 guaranteed payment for extra services he provides to the partnership. Given the following income statement and balance sheet from Tall Ladders, what is Tony's adjusted tax basis at the end of Year 2?
Definitions:
Board of Governors
The Federal Reserve System’s governing body.
Federal Open Market Committee
A branch of the Federal Reserve that oversees open market operations, including the buying and selling of government securities, to influence the money supply and interest rates.
Open Market Operations
The buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.
Federal Reserve
The central banking system of the United States, responsible for conducting national monetary policy and overseeing financial institutions.
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