Stan Had a Basis in His Partnership Interest at the Beginning

question 12

Multiple Choice

Stan had a basis in his partnership interest at the beginning of last year of $30,000. There was no change in partnership liabilities during the year. His share of the partnership's ordinary loss last year was $40,000 and the partnership had no separately stated items. This year, Stan has a distributive share of ordinary income of $30,000. The taxable income from the partnership reported on Stan's personal income tax return this year (ignoring the at-risk and passive activity loss limitations) is

• A)$10,000 ordinary loss.
• B)$20,000 ordinary income.
• C)$30,000 ordinary income.
• D)$40,000 ordinary income.

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Definitions:

Fairness

The quality of making judgments that are free from discrimination or bias and treating all people equally.

Definition

the act of describing the meaning of a word or phrase, often to clarify its significance in a particular context.

Heritability Ratio

A statistical estimate of the proportion of observed variation in a particular trait (like height or intelligence) within a population that can be attributed to inherited genetic factors.

Genetic Differences

Variations in the DNA sequences among individuals that contribute to biological diversity within a species.