Bart Contributes $100,000 to the Tuna Partnership for a 40

question 93

Multiple Choice

Bart contributes $100,000 to the Tuna Partnership for a 40% interest.During the first year of operations,Tuna has a profit of $20,000.At the end of the first year,Tuna has outstanding loans from the following banks.

What is Bart's at-risk basis in Tuna at the end of the first year?

• A)$100,000.
• B)$108,000.
• C)$112,000.
• D)$124,000.
• E)None of the above.

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Definitions:

Competing Business

A company or enterprise that operates in the same industry or market as another and vies for the same set of customers.

Uniform Partnership Act

A standard set of laws adopted by states to regulate business partnerships, aiming at consistency across jurisdictions.

Liquidated Assets

Assets that have been converted into cash or cash equivalents, often during the process of paying off debt or during liquidation of a company.

Partnership Debt

Partnership debt is the financial obligations that a partnership entity owes to creditors, which are typically shared among the partners according to their agreement.