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Sharon and Sara Are Equal Partners in the S&S Partnership

question 9

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Sharon and Sara are equal partners in the S&S Partnership.On January 1 of the current year,each partner's adjusted basis in S&S was $50,000 (including each partner's $15,000 share of the partnership's $30,000 of liabilities) .During the current year,S&S repaid the beginning liabilities and borrowed $20,000 for which Sharon and Sara are equally liable.In the current year ended December 31,S&S also sustained a net operating loss of $25,000 and earned $5,000 of interest and qualified dividend income from investments.If liabilities are shared equally by the partners,on January 1 of the next year each partner's basis in her interest in S&S is:


Definitions:

Forced Expiration

The act of expelling air from the lungs with effort beyond normal exhalation.

Diaphragm

is the primary muscle used in the process of breathing, separating the thoracic cavity from the abdominal cavity.

External Intercostals

Muscles located between the ribs that help expand the chest cavity during inhalation.

Prime Mover

The muscle or group of muscles primarily responsible for generating a specific movement in the body.

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