Mutt and Jeff Are General Partners in M&J Partnership and Share

question 79

Multiple Choice

Mutt and Jeff are general partners in M&J Partnership and share profits and losses equally. Partnership operations for the current tax year were:
Ordinary business income $\quad$$\quad$$\quad$ $ 100,000
Long-term capital gain $\quad$$\quad$$\quad$$\quad$$\quad$ 10,000
Total distributions to partners $\quad$$\quad$$\quad$ 60,000
Mutt's tax basis in his partnership interest at the beginning of the current year was $12,000. What is his basis at the beginning of next year?

• A) $25,000
• B) $37,000
• C) $13,000
• D) $27,000

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Definitions:

Causal Arrow

A concept used to denote the direction of cause and effect in studies and theories.

Negative Schema

Cognitive frameworks or beliefs that lead individuals to view themselves, others, and the world in a pessimistic or detrimental light.

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A condition in which individuals believe they have no control over the outcomes of events, leading to passivity and depression.

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