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:

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over internal mental states.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning and interaction with the environment, minimizing the role of heredity.

Skinner

B.F. Skinner, an influential American psychologist, known for his work in behaviorism and for developing the theory of operant conditioning.

Structuralism

A methodological principle in psychology and social sciences focusing on analyzing the basic components of complex phenomena, traditionally associated with Wilhelm Wundt and Edward Titchener.