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

question 9

Multiple Choice

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:

• A)$35,000.
• B)$40,000.
• C)$45,000.
• D)$47,500.
• E)$50,000.

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Definitions:

Laissez-Faire Racism

A subtle form of racism that assumes a non-interventionist approach in social policy regarding racial issues, perpetuating racial inequality through passive acceptance.

Negative Stereotyping

The practice of ascribing to an individual or group negative characteristics or traits without evidence, based on their association with a particular category.

Economic Growth

The increase in the inflation-adjusted market value of goods and services produced by an economy over time.

Racial Inequality

The unequal treatment or disparities experienced by individuals or groups based on race, affecting areas such as employment, education, healthcare, and justice.