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:

Women

Female human beings, with discussions often focusing on their social, political, and economic rights and status.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work and reducing dependency on government benefits.

Social Security Act

A law enacted in 1935 to create a system of transfer payments in which younger, working people support older, retired people.

Poverty

A socioeconomic condition characterized by a significant lack of financial resources or income, leading to an inability to meet basic living needs.