Joey and Bob Each Have 50% Interest in a Partnership

question 35

Multiple Choice

Joey and Bob each have 50% interest in a Partnership.Both Joey and the partnership file returns on a calendar year basis.Partnership Q had a $12,000 loss in 2013.Joey's adjusted basis in his partnership interest on January 1,2013 was $5,000.In 2014,the partnership had a profit of $10,000.Assuming there were no other adjustments to Joey's basis in the partnership,what amount of partnership income (loss) should Joey show on his 2013 and 2014 individual income tax returns?

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Definitions:

Distal End

The part of a limb or structure furthest from the body's midline or the point of attachment.

Skeletal System

The body system composed of bones and cartilage that provides structure, support, and protection, as well as enabling movement.

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A chronic inflammatory disorder affecting the joints, characterized by pain, swelling, and potential loss of function, primarily in the hands and feet.

Thoracic Vertebrae

The segment of the spine located in the mid-back, consisting of 12 vertebrae that are attached to the rib cage.