Alex Is a Partner in a Calendar Year Partnership $\quad$

question 17

Multiple Choice

Alex is a partner in a calendar year partnership. His partnership Schedule K-1 for the current tax year showed the following: Ordinary business income $\quad$$\quad$$\$ 41,000$
Short-term capital loss $\quad$$\quad$$\quad$$\mathbf { 1 , 5 0 0 }$ Alex has a $7,000 loss carryforward from the partnership last year, which he could not deduct because of the basis limitation. What is his tax basis in his partnership interest at the end of the current tax year?

• A) $41,000
• B) $32,500
• C) $39,500
• D) $34,000

---

Definitions:

Teratogen

Any agent or substance that can cause malformations or defects in a developing embryo or fetus when exposed to the pregnant mother.

Intellectual Disability

A generalized neurodevelopmental disorder characterized by significantly impaired intellectual and adaptive functioning.

Fetal Alcohol Syndrome

A condition in a child that results from alcohol exposure during the mother's pregnancy, causing growth, mental, and physical problems.

Birth Weight

The weight of a newborn measured immediately after birth, considered an important indicator of neonatal health and future development.