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:

RAM

Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing the operating system, application programs, and currently processed data.

Currently Used

Refers to software, protocols, or standards that are actively being employed in technological systems or processes at the present time.

Programs

Instructions written in a programming language that is executed by a computer to perform specific tasks or functions.

Data

Refers to facts and statistics collected together for reference or analysis.