Partner Spence Had the Following Items Reported on a Partnership

question 61

Multiple Choice

Partner Spence had the following items reported on a partnership Schedule K-1: $\begin{array}{lr}\text { Ordinary income }&\$57,000\\\text { Interest income } & 4,900 \\\text { Dividend income } & 5,300 \\\text { Guaranteed payment } & 15,000 \\\text { Section 179 expense } & 16,000 \\\text { Cash distribution } & 20,000\end{array}$ Spence had a basis in his partnership interest of $23,000 at the beginning of the year.What is Spence's basis in his partnership interest at the end of the year?

• A)$21,000.
• B)$31,200.
• C)$54,200.
• D)$70,200.

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Definitions:

Causes

refers to principles, aims, or movements that people support or fight for, especially in the realm of social or political issues.

Business Proposal

A document designed to offer specific goods or services to a potential buyer or client.

Overhead Costs

The ongoing expenses not directly attributed to creating a product or service but necessary for running a business, such as rent, utilities, and administrative salaries.

Budget

An estimate of income and expenditure for a set period of time, often used for planning and managing finances.