In January, Daryl and Louis Form a Partnership with Each

question 56

Essay

In January, Daryl and Louis form a partnership with each contributing $75,000 in cash. The partnership agreement provides that Daryl would receive a guaranteed payment for salary of $20,000 and that partnership profits and losses (computed after deducting Daryl's salary)would be shared equally. For the year, the partnership's operations result in an $18,000 ordinary loss after payment of Daryl's guaranteed payment. The partnership has no outstanding liabilities at year-end. What is the basis amount of Daryl's partnership interest at year-end?

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Definitions:

DNA Segment

A specific sequence of DNA within a chromosome characterized by a particular function or genetic information.

Reverse Transcription

The process by which the information contained in RNA molecules is transcribed into DNA molecules.

DNA Ligase

An agent that supports the unification of DNA strands by enabling the production of a phosphodiester bond.

Covalent Bonds

Bonds formed by the sharing of electrons between atoms.