Partner Tami (A 20% Partner)had the Following Items Reported to Her

question 62

Multiple Choice

Partner Tami (a 20% partner) had the following items reported to her on a partnership Schedule K-1: Tami had a basis in her partnership interest of $14,000 at the beginning of the year.Additionally,the partnership has recourse liabilities of $100,000 outstanding at the end of the year.What is Tami's basis in her partnership interest at the end of the year?

• A) $7,000.
• B) $11,200.
• C) $23,200.
• D) $31,200.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the law across jurisdictions.

Renunciation

The formal rejection of a claim, right, or possession, usually involving a legal or official declaration.

Forbear

To refrain from enforcing a right or claim, or to abstain from doing something.

Unilateral Contract

A contract in which one party makes a promise in exchange for the other party's performance, rather than a promise in return.