Partner Spence Had the Following Items Reported on a Partnership

question 33

Multiple Choice

Partner Spence had the following items reported on a partnership Schedule K-1: 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:

Percent of Assets

A measure or indicator expressed as a percentage of a company's total assets.

Interest Coverage Ratio

A financial metric used to determine how easily a company can pay interest on outstanding debt with its current earnings before interest and taxes.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Operating Activities

Those activities directly related to the production, sale, and delivery of a company's products or services, as reflected in its income statement.