William and Irene Each Contribute $20,000 Cash to the WI

question 106

Multiple Choice

William and Irene each contribute $20,000 cash to the WI Partnership on January 1 of last year.William and Irene share profits and losses equally.Last year,the partnership reported tax-exempt interest income of $4,000.This year,each partner receives $1,000 of the tax-exempt interest income in a cash distribution.There are no partnership liabilities and no other income,loss,contributions,or distributions during both years.William's basis in the partnership interest following these transactions is

• A)$19,000.
• B)$20,000.
• C)$21,000.
• D)$22,000.

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Definitions:

Offensive Contact

In tort law, an act that would offend a reasonable person's personal dignity or integrity without their consent.

Transferred Intent

A legal principle allowing the intent to harm one individual to be transferred to another individual who was actually harmed.

Battery

An intentional act that causes harmful or offensive contact with another person's body.

Rock

A naturally occurring solid aggregate of one or more minerals or mineraloids found in the Earth's crust.