Partner Jamie Has a Basis of $10,000 in a Partnership

question 31

Multiple Choice

Partner Jamie has a basis of $10,000 in a partnership at the beginning of the year.She receives $5,000 in cash distributions,her distributive share of income is $3,000,and she receives an equipment distribution with a basis of $6,000 (FMV $12,000) .Jamie's basis in her partnership interest at the end of the year is:

• A)$0.
• B)$2,000.
• C)$8,000.
• D)$13,000.

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Definitions:

Cytoplasm

The gel-like substance inside the cell membrane excluding the nucleus, containing organelles and is the site of most cellular activities.

Chromosomes

Structures within cells that consist of DNA and protein and contain the genes.

Metaphase

A stage of cell division in which chromosomes align in the middle of the cell before being separated into each of the two daughter cells.

Mitochondrion

An organelle found in large numbers in most cells, involved in energy production.